Gains from investments in qualified businesses.
Atlanta City Code § 30-310
in effectSec. 30-310. - Gains from investments in qualified businesses.
(a) In recognition of the fact that investment is a crucial component of encouraging the creation of new businesses in emerging markets and technologies, it is the intent of this division that an exemption from taxes also be provided for gains from the sale of stocks, bonds, partnership shares or instruments of indebtedness that are given in exchange for funding the creation of a qualifying business.
(b) A business entity receiving stocks, bonds, partnership shares, or instruments of indebtedness that are given in exchange for a cash investment in a qualifying businesses, shall be exempt from taxes on the first $1,000,000.00 received above the amount of the initial cash investment where such gain is in connection with the sale of such stocks, bonds, partnership shares, or instruments of indebtedness, provided that cash is received as payment for the sale thereof within three years of the date of the cash investment or the date of registration of the qualifying business, whichever is earlier.
(1) For the purpose of this division, gain from an investment in a qualifying business that is no longer included in the list of NAICS classifications approved to provide start-up exemptions when the stocks, bonds, partnership shares, or instruments of indebtedness received in exchange for the initial cash investment are sold, shall still receive the exemption provided by this section so long as the cash that is received as payment for the sale of such investment is received within the time provided in this section.
(c) No exemption is allowed for gains resulting from investment in any type of business entity other than in a qualified business in its initial registration year and that was registered with the office of revenue within 30 days of the date that such investment was made or the date of initial registration whichever is later.
(d) In order to encourage reinvestment in new qualifying businesses, gain resulting from the exchange of stocks, bonds, partnership shares, or instruments of indebtedness given in exchange for a cash investment in a qualifying businesses for stocks, bonds, partnership shares, or instruments of indebtedness, the amount of gain recognized shall not be exempt from taxes imposed under this article.
(Ord. No. 2015-13(15-O-1078), § 1(Exh. A), 3-11-15)
Source: City of Atlanta, Code of Ordinances (Charter and Related Laws, General Ordinances, Land Development Code) (Municode Library, library.municode.com)URL: https://library.municode.com/ga/atlanta/codes/code_of_ordinances?nodeId=PTIICOORENOR_CH30BU_ARTIIIOCTA_DIV4PRTAEXNEEMTEBU_S30-310GAINQUBUFetched: 10/28/2026