Each year, the Georgia Department of Community Affairs ranks all of Georgia’s 159 counties 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 information is used to divide the counties into one of four Tier designations. Tier 1 communities receive the most benefit from the State’s Job Tax Credit program. Athens-Clarke County has traditionally been a Tier 1 community, but has been designated a Tier 2 community for 2015.

Although businesses creating jobs in Athens-Clarke County will now receive less benefit from the Job Tax Credit Program, our new Tier designation is a result of an increase in our relative wealth. Strong private sector growth has been fostered by dedication 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 distribution, processing, telecommunications, broadcasting, tourism, or research and development. Tier 1 communities receive $3,500 per job created, Tier 2 communities receive $2,500 per job created, Tier 3 communities receive $1,250 per job created, and Tier 4 communities receive $750. The original intent of the law was to make less developed communities more competitive when bidding against other communities for economic development projects. The Job Tax Credit can be increased by $500 for a community in a Joint Development Authority (which most communities are, Athens included), and can be taken for five years. For example, a company creating 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 creating 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 designation can greatly affect a community’s relative competitiveness against other Georgia communities. In the example above, the company receives $500,000 less from the higher Tier designation. This affects our competiveness in the short-run and on a project specific basis.

However, the new designation signifies Athens-Clarke County’s relative increase in wealth as compared to other Georgia communities. From a long term competitiveness, poverty reduction, and quality of life standpoint; this is great news! Not only did Athens-Clarke County move up a Tier designation, but went from being ranked 56th  out of 159 counties based on the above economic factors to being ranked 87th. This is a significant change. We improved our position over 31 other counties, a 19% improvement.

So although the new Tier designation will make us less competitive in the immediate future, it represents a decrease in unemployment and poverty, and an increase in incomes as compared to other communities. This is made possible by strong leadership in our community and determination within our private sector. If you have hired someone, made an investment in the community, or served on a Board or Committee over the past year, thank you for helping make Athens-Clarke County a better place to live, work, and raise a family!