This program provides relief for municipalities that have been severely impacted by a prime defense contract cutback or closure of a major aerospace or defense plant.
Key Incentives for Businesses
For qualifying manufacturers: Companies involved in manufacturing, research associated with manufacturing and distribution warehousing (new construction/expansion only) may benefit from:
- a five-year, 80% property tax abatement; and
- a 10-year, 25% business tax credit.
For qualifying service companies: Certain service companies may also be eligible for these benefits based on several sliding scales:
- 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 10-year, 15% business tax credit; up to
- if they create 2,000+ jobs: a 10-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).
Eligibility for Municipalities
Any municipality that had a defense manufacturing plant that was vacant on July 1, 1998, may apply to the Commissioner of the Department of Economic and Community Development for relief. That determination will be made after a public hearing. If made, the zone would be effective for two years and may be renewed for another two years following another public hearing. Since inception, Defense Plan Zones have been designated in the towns of Stratford and Cheshire.
Note: any municipality that designates a Defense Plant Zone will not be considered a Targeted Investment Community, and no other incentive programs or benefits available within a Targeted Investment Community apply.
Economic Development Coordinator
84 South Main Street
Cheshire, CT 06410
Fax: (203) 271-6688