Shortly after being named Watkinsville’s first Downtown Development
Director, Kate Patterson met with other Georgia downtown leaders. She continued to hear about one program, the RURAL Zone, as one of the most productive ways to stimulate revitalization and create jobs for downtown communities. Just over a year later, thanks to a lot of hard work from Patterson and others, the city has received the RURAL Zone designation and is ready to share details with eligible property owners, business owners and potential investors.
Watkinsville was named one of just four cities in the state for the 2024 RURAL Zone cohort, which also includes Blakely, Sylvania, and Vidalia. Rural Zones (RURAL is an acronym for Revitalizing
Underdeveloped Rural Areas Legislation) aid in the revitalization of rural downtowns by offering tax
incentives for current and future businesses that create at least 2 jobs within a designated Rural Zone.
About the RURAL Program
The program, administered jointly between the Georgia Department of Community Affairs and the
Department of Revenue, has been around since 2017. It is a five-year designation and currently there are 38 RURAL Zones in the state.
Patterson originally submitted the entire Downtown Development Authority Map for the RURAL zone boundary and most of it was approved, with DCA removing parcels owned by not-for profit
organizations including the Oconee County School District and OCAF. A map of the eligible parcels can be found HERE.
There are three specific tax incentives available through the RURAL zone program, including job tax
credits, investment tax credits and rehabilitation tax credits.
The job tax credit is offered to any new or existing business that adds at least two full time equivalent jobs per year for up to five years and is not to exceed $200,000 total or $40,000 per year. Eligible businesses include professional services or retail and the credits can be taken for 5 years as long as the jobs are maintained.
The investment credit offers 25 percent of the purchase price of a building within the Zone, not to
exceed $125,000 total for five years. To claim this credit, the investment property must be within the zone and create at least two full time equivalent jobs. This credit is prorated over 5 tax years.
The rehabilitation credit is equivalent to 30 percent of the qualified rehabilitation costs of a building, not to exceed $150,000. This credit is prorated over three years and the property under rehabilitation must be within the RURAL zone and create at least two full time equivalent jobs.
“This may be just what some investors and owners need to take the next big step, to grow their
business, to expand their footprint, to update their building,” says Patterson. “The DDA has never had growth as a goal for downtown Watkinsville, especially given the quaint charm of our linear downtown, but we do want to protect and improve what we have, attract new retailers and restaurants, improve our walkability, and protect our historical treasures."
“If you own property and have been on the fence about updating it, expanding it, breathing new life into it, these tax credits may move the needle for you to go ahead and take the next step,” Patterson added.
Other nearby RURAL zones include: Clayton, Comer, Eatonton, Hartwell, Lavonia, Thompson, Forsyth, Thomaston, and Washington.
“Many of our decisions and investments in Watkinsville revolve around protecting and strengthening our downtown, and this is an unmatched way that existing property owners and new business owners can create jobs, save taxes, and improve properties,” said Watkinsville Mayor Brian Brodrick. “I would encourage all downtown property owners to attend the January 24 event so they can learn about how to take advantage of the program.”
Patterson cites the city of Hartwell as having tremendous success with their designation, which ran from 2019 through 2023. Jason Ford, Economic and Community Development Director for Hartwell says because of the RURAL zone program, “our downtown property values increased from $7.6 million when we applied in 2018 to over $34 million at the end of 2022.”
Taylor Smith, who leads the RURAL zone efforts in Thomaston reports that “in their first year of
designation (2022), downtown Thomaston had 4 RURAL zone projects, 14 new businesses open, 28 new jobs created and a total of $9,791,784 in public and private investment. In 2023, through November, downtown Thomaston has seen 14 RURAL zone projects, 18 new businesses open, 49 new jobs created and $5,977,260 invested in public and private dollars.”
Watkinsville’s designation runs from January 1, 2024 through December 31, 2028. As long any of the credits are taken beginning within this time frame, they may be claimed for the following three or five years, depending on the credit type, even though the city’s designation may expire during that time. Another benefit of the credits: if your credits exceed your tax bill, the credit balance may be used for up to ten years.
If you have more questions, please contact Downtown Development Director, Kate Patterson at
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