IT-RZ: Rural Zone Tax Credits (2025)
Georgia · Georgia DOR · Used for tax years 2025
Georgia Form IT-RZ calculates rural zone tax credits for property investments, qualified rehabilitation expenditures, and jobs. It reports property and project details, credit calculations, and full-time equivalent job counts.
Who files this form
Use the 2025 Form IT-RZ for Rural Zone tax credits if you acquired your property or your Year One begins on or after January 1, 2025.
Complete only the parts that apply to you:
- Part A, Property/Investment Tax Credit: Certified investors who meet the credit requirements.
- Part B, Qualified Rehabilitation Expenditures Tax Credit: Certified entities or certified investors who meet the credit requirements.
- Part C, Jobs Tax Credit: Certified entities who meet the credit requirements. A certified entity must create at least two new full-time equivalent jobs to qualify for this credit.
“Year One” is the tax year when enough qualifying new full-time equivalent jobs are created to entitle an eligible business to claim Rural Zone tax credits.
What you'll need
Required attachment: The certified entity or business must attach its Department of Community Affairs certification(s) to Form IT-RZ. The definitions also require certified investor and qualified rehabilitation expenditure certifications to be attached to the income tax return when the credit is claimed.
Have the following information ready for the parts you complete:
- Your name, FEIN or Social Security number, address, business type, tax year ending, and contact information.
- Part A: Investment property address, eligible business name, purchase price, and information about the business’s jobs or Rural Zone Jobs Tax Credit.
- Part B: Project address, qualified rehabilitation expenditures, and the number of full-time equivalent jobs maintained.
- Part C: Monthly full-time equivalent jobs subject to withholding, months in operation, and prior-year job averages.
- Part D: Prior-year credit carryforward and current-year Georgia income tax liability.
Common mistakes
- Leaving out certifications. The form specifically requires Department of Community Affairs certification(s) to be attached.
- Completing a part without qualifying. Parts A, B, and C each say that only the specified certified investors or entities meeting that credit’s requirements should complete the part.
- Using this version without checking the starting date. The form says to use it if you acquired your property or your Year One begins on or after January 1, 2025.
Questions people ask
How much is the property/investment credit?
The credit is 25% of the property’s purchase price, up to $125,000 per project. Part A divides that amount by three to determine the maximum credit allowed per year for three years.
How much is the rehabilitation credit?
The credit is 30% of qualified rehabilitation expenditures, up to $150,000 per project. Part B divides that amount by three to determine the maximum credit allowed per year for three years. Qualified expenditures are labor and material costs that meet the code and certification requirements stated in the form.
How much is the jobs credit?
The credit is $2,000 per qualifying new full-time equivalent job, with a maximum of $40,000 per tax year. A certified entity must create at least two new full-time equivalent jobs to be eligible.
What counts as a full-time equivalent job?
The form defines it as combined employee hours totaling 40 hours per week, equivalent to one full-time job, with the work performed by at least two people.
Can unused credits be carried forward?
Yes. Unused credit may be carried forward for five years from the close of the taxable year in which the credit was claimed. Part D limits the current-year credit to the lesser of the available credit, including carryforward, or current-year Georgia income tax liability.