R.U.R.A.L. Zone

The City of Douglas has been designated as a R.U.R.A.L. (Revitalizing Underdeveloped Rural Areas Legislation) Zone by the Georgia Department of Community Affairs.  The R.U.R.A.L. Zone designation is an incentive program designed to stimulate investment, job creation, and economic development in the historic downtown area. General criteria for designation include communities with a population of less than 15,000; a core downtown area with structures older than 50 years; evidence of blight or disinvestment in the downtown area; implementation of a strategic plan in the downtown area; and a completed market analysis, which indicates gaps within the local business makeup.

Douglas' R.U.R.A.L. Zone designation will be in effect for five years (Jan. 2025 - Dec. 2029), allowing eligible businesses to start earning tax credits. 

The program includes three tax incentive options: the job tax credit, an investment credit, and a rehabilitation credit. With three distinct tax incentive options available—Job Tax Credit, Investment Credit, and Rehabilitation Credit—now is the perfect time to invest in our community. Applications will be accepted beginning January 1, 2025 through December 31, 2029.

The following is a summary of the qualifications for each of the three tax incentives:

• Job Tax Credit - For a new business owner that creates at least 2 new jobs of an existing business owner that hires at least 2 new employees.  At least 2 net, new full-time equivalent jobs (an aggregate of employee worked hours totaling 40 hours per week between two or more employees) must be created to qualify.  Equal to $2,000 per new full-time equivalent job per year, up to 5 years and not to exceed $200,000 total or $40,000 per year.
• Investment Credit - For investors who purchase a building within the designated RURAL Zone.  The credit is equivalent to 25% of the purchase price, not to exceed $125,000 total or $25,000 per year.  At least 2 net, new full-time equivalent jobs must be created and maintained at the property location to qualify.
• Rehabilitation Credit - To offset development costs associated with rehabilitating a property located within a designated RURAL Zone.  The credit is equivalent to 30% of qualified rehabilitation costs, not to exceed $150,000 total or $50,000 per year.  At least 2 net, new full-time equivalent jobs must be created and maintained at the property location to qualify.

The process for a business to be approved for the incentives is an easy 4-step process.  To apply for the R.U.R.A.L.  Zone tax credits, businesses should file an application with the City of Douglas Community Development Department located at City Hall, 302 S. Madison Avenue.   After the application has been submitted, local officials will certify the business is located in the R.U.R.A.L. Zone and meets all qualifications.  Once this has been certified, the city will submit application to the Department of Community Affairs (DCA) for acceptance.  Once certified by DCA, a copy is submitted to the applicant, local jurisdiction, and Georgia Department of Revenue. If approved, certification should be attached to the business tax return when the credit is claimed.

Anyone interested in applying for the R.U.R.A.L. Zone tax credits, please contact Georgia Henderson, Community Development Director, 912-383-0277 or email ghenderson@cityofdouglasga.gov. 

Link to Douglas RURAL Zone Information (PDF)

Link to Douglas RURAL Zone Tax Credit Application (PDF) - Applicants should only complete Section One of the application and then return the form to the Community Development Department.