MARIETTA - Marietta is the first city in the county, and one of the few in the state, to receive approval for a program that encourages new businesses to locate here or existing businesses to expand through the use of tax credits.

Qualifying businesses will receive $3,500 per year per employee for up to five years for any two or more new positions created. A caveat is that the jobs have to pay more than $425 a week.

That means if a new business were to locate to the city with 100 employees, it would receive $350,000 per year for five years, City Manager Bill Bruton said.

Mayor-elect Steve Tumlin said the program will make the city more attractive to a company deciding where to locate in metro Atlanta.

"I think that would get most businessmen's attention," Tumlin said of Bruton's $350,000 number.

Other counties that use the tool include Augusta-Richmond, Norcross, Cherokee, Cornelia and Darien, said Beth Sessoms, the city's economic development manager.

The key to qualifying is to be located in one of the designated areas of the city approved by the state.

In general, those areas include parts of Roswell Street, the South Loop, Fairground Street, Franklin Road, Powder Springs Street, such as the dilapidated area around Sandtown Road, and some of the older industrial park areas along Interstate 75 and Canton Road, Bruton said.

Councilman Grif Chalfant said, "These guys are hard to get to move here with the way the banks aren't lending money, but if there's anything that helps, we need it."

The city's most prominent companies, such as Lockheed Martin and WellStar Kennestone Hospital, are not included in the "opportunity zone" designation. The program is intended to encourage job growth in areas where there is underemployment or vacancies, Bruton said.

Council approved the zones at its July meeting to be sent to the state. The state's Department of Community Affairs sent the city a Nov. 20 letter notifying approval of those maps with a few revisions such as the removal of the corner of Roswell Street and Cobb Parkway.

Bruton said funding comes out of state, not local revenue. Businesses claim the tax credits against their income tax liability and/or state payroll withholding. The state ensures compliance by monitoring the businesses payroll.

"This is the biggest economic development tool that we have ever had to encourage the expansion of local business and the relocation of other businesses to Marietta," Bruton said.

Businesses may begin applying for the credits for tax year 2009, Sessoms said. For more information, call Sessoms at 770-794-5717.