COVINGTON, Ga. – The city of Covington has announced its new designation as a Rural Zone, a significant achievement that will unlock critical state tax incentives aimed at fostering economic development and revitalizing its historic downtown district.
Covington is one of nine Georgia cities to receive this designation in the 2024 round of Rural Zone announcements, alongside Chickamauga, Dallas, Dawsonville, Douglas, Ellaville, Fort Oglethorpe, Sandersville, and Warrenton. The Rural Zone program, a partnership between the Georgia Department of Community Affairs and the Georgia Department of Economic Development offers a range of state income tax credits designed to incentivize job creation, property investments, and downtown revitalization efforts in rural communities. Covington’s designaLon opens the door for local businesses and investors to take advantage of these tax incentives, starting Jan. 1, 2025.
In order to qualify for any of the credits, businesses must first create at least two new full-time jobs.
Incentive Highlights Include:
• Jobs Tax Credit: $2,000 per year for each new full-time equivalent (FTE) employee, available for up to five years, for businesses that create new jobs.
• Investment Credit: 25 percent of the purchase price of a property within the designated Rural Zone, up to a maximum of $125,000.
• Rehabilitation Credit: 30 percent of qualified rehabilitation costs for a property in the Rural Zone, up to a maximum of $150,000.
“This is an exciting opportunity for Covington to leverage the benefits of the Rural Zone program to foster economic development, create jobs, and enhance the vitality of our downtown area,” said Fleeta Baggett, mayor of Covington. “This designation represents a significant step forward for our community, and we look forward to working with localbusinesses and investors to make the most of these valuable incentives.”
The Rural Zone designation lasts for five years, providing ample time for businesses and property owners to take advantage of the incentives. Communities, local developers and business owners are encouraged to start planning for the opportunities that will begin in 2025.
A Strategic Partnership for Community Growth
The Rural Zone initiative is a key component of Georgia’s broader strategy to promoteeconomic development in rural communities. By offering targeted tax credits, the program encourages investment in the revitalization of historic downtown areas, creating a vibrant business environment while preserving the unique character of each community.
For Covington, this designation is expected to bolster efforts to revitalize its historic square and surrounding districts, attracting new development and job creation in the heart of the city.
Local stakeholders, including business owners, real estate developers, and investors, are encouraged to explore these opportunities and take advantage of the benefits that the Rural Zone offers.
