From the Director
Athens-Clarke County Designated
as a Tier 2 Community
by Ryan Moore
E
ach year, the Georgia Department of Community
Affairs ranks all of Georgia’s 159 coun es based on
the following economic factors: unemployment rate
for the most recent 36 month period, per capita
income for the most recent 36 month period, and percentage
of residents whose incomes are below the poverty level. This
informa on is used to divide the coun es into one of four Tier
designa ons. Tier 1 communi es receive the most benefit
from the State’s Job Tax Credit program. Athens‐Clarke
County has tradi onally been a Tier 1 community, but has
been designated a Tier 2 community for 2015.
Although businesses crea ng jobs in Athens‐Clarke County will
now receive less benefit from the Job Tax Credit Program, our
new Tier designa on is a result of an increase in our rela ve
wealth. Strong private sector growth has been fostered by
dedica on and commitment to economic development by our
elected officials, and we are now seeing the results.
Georgia’s Job Tax Credit Law provides credit to any business
or headquarters of any such business engaged in
manufacturing, warehousing and distribu on, processing,
telecommunica ons, broadcas ng, tourism, or research and
development. Tier 1 communi es receive $3,500 per job
created, Tier 2 communi es receive $2,500 per job created,
Tier 3 communi es receive $1,250 per job created, and Tier 4
communi es receive $750. The original intent of the law was
to make less developed communi es more compe ve when
bidding against other communi es for economic development
projects. The Job Tax Credit can be increased by $500 for a
community in a Joint Development Authority (which most
communi es are, Athens included), and can be taken for five
years. For example, a company crea ng 100 jobs in a Tier 1
community would receive the following credit: 100 x $4,000 x
5 years = $2,000,000. Likewise, a company crea ng 100 jobs in
a Tier 2 community would receive the following credit: 100 x
$3,000 x 5 years = $1,500,000.
So as you can see, the higher Tier designa on can greatly
affect a community’s rela ve compe veness against other
Georgia communi es. In the example above, the company
receives $500,000 less from the higher Tier designa on. This
affects our compe veness in the short‐run and on a project
specific basis.
However, the new designa on signifies Athens‐Clarke
County’s rela ve increase in wealth as compared to other
Georgia communi es. From a long term compe veness,
poverty reduc on, and quality of life standpoint; this is great
news! Not only did Athens‐Clarke County move up a Tier
designa on, but went from being ranked 56th out of 159
coun es based on the above economic factors to being
ranked 87th. This is a significant change. We improved our
posi on over 31 other coun es, a 19% improvement.
So although the new Tier designa on will make us less
compe ve in the immediate future, it represents a decrease
in unemployment and poverty, and an increase in incomes as
compared to other communi es. This is made possible by
strong leadership in our community and determina on within
our private sector. If you have hired someone, made an
investment in the community, or served on a Board or
Commi ee over the past year, thank you for helping make
Athens‐Clarke County a be er
place to live, work, and raise a
family!
.
Winter 2015
13
13 13