OverviewIf a municipality is contiguous to an Enterprise Zone in another municipality and meets the Statutory requirements, it may apply to the DECD commissioner to participate in the Enterprise Zone program of benefits.
Key Incentives for BusinessesFor qualifying manufacturers: Companies involved in manufacturing, research associated with manufacturing and distribution warehousing (new construction/expansion only) may benefit from:
- a five-year 80% abatement of local property taxes on qualifying real estate and personal property (machinery and equipment)—the investment must be new to the municipality’s Grand List as a direct result of a business expansion and/or renovation, and
- other benefits as stipulated in the Connecticut General Statutes.
- If they invest $20-90 million: a five-year, 40% property tax abatement on real estate and/or equipment; OR
- if they invest more than $90 million: a five-year, 80% property tax abatement on real estate and/or equipment.
- If they create 300-599 jobs: a ten-year, 15% business tax credit;
- if they create 2,000+ jobs: a ten-year, 50% business tax credit.
Eligibility for Businesses
Since these programs are designed to encourage capital improvements to land and/or buildings, businesses must be prepared to either renovate an existing facility by investing at least 50% of its pre-acquisition value in the renovation, OR construct a new facility, OR expand an existing facility, OR acquire a facility that has been idle (minimum period of idleness depends on average number of employees).
Sec. 32-70. Enterprise zones. Designation. Expansion.
How to Apply
For businesses seeking tax incentives and other benefits: Across all cities and towns that are approved by the DECD to participate in the Enterprise Zone program:
- Before starting any project, the business must first submit a formal request through the local economic development office of the municipality in order to obtain a Preliminary Questionnaire.
- If pre-qualified, the business would receive from the DECD a formal application and an invitation to apply.
- The business submits a complete application with required documentation to the DECD prior to October 1 of the year in which the project will be completed.
- If approved, DECD would issue a Certificate of Eligibility.
To view the designated municipal Enterprise Zone coordinator for this zone type, please refer to the Contact section.