Atlanta among 40 cities proposed for billions in tax incentives

ATLANTA - Atlanta is one of 40 cities designated to receive millions of dollars in tax breaks to stimulate jobs and affordable housing in declining neighborhoods under a proposal by the U.S. Department of Housing and Urban Development. <br> <br> The so-called ``renewal communities&#39;&#39; would be eligible for a $17 billion incentive program that would allow businesses in designated areas to pay lower federal taxes if they hire and retain community residents. <br> <br> The designation provides businesses with up to $1,500 in federal tax credits for every newly hired or existing employee living within the renewal zone, up to $2,400 in tax credits for every employee hired from groups with traditionally high unemployment rates and up to $5,000 in tax credits for each newly hired welfare recipient. <br> <br> HUD officials hope the tax incentives will stimulate job growth while creating affordable housing. <br> <br> Atlanta Mayor Shirley Franklin said Wednesday that the city identified several neighborhoods and commercial corridors many in the Atlanta Empowerment Zone that could benefit from the stimulus package. <br> <br> ``This is a big step,&#39;&#39; Franklin said. <br> <br> HUD Regional Director Jim Chaplin said the exact amount in tax breaks for Atlanta has not been determined yet. <br> <br> The city was chosen based on a strong grant proposal and Atlanta&#39;s 38 percent poverty rate, Chaplin said. <br> <br> ``This says to businesses that coming to these communities will not only benefit you, but the community as well,&#39;&#39; Chaplin said. ``It says, &#39;Do business, expand your business and let&#39;s hire people.&#39;&#39;&#39; <br> <br> The city will receive regulatory relief and tax breaks aimed at promoting economic development.

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