We know many Connecticut businesses are struggling as they deal with the effects of COVID-19. We appreciate their perseverance and know they share our commitment to keeping our residents healthy. The state, working with its federal partners, has several programs and initiatives in place to assist businesses during this difficult period. For specific questions related to small business, email the Joint Information Center at COVID19.JIC@ct.gov, or call the DECD small business hotline at 860-500-2333. Individuals can call 2-1-1 for more information.

Municipal Tax Abatements

Overview

Each Connecticut municipality can offer local tax abatements for both real estate and manufacturing machinery and equipment. They’re based on a sliding scale, depending on your level of investment. 


If you’re acquiring or leasing real property (or air space) in a Connecticut city or town, the local municipality can choose to freeze the assessment of the property and any improvements you may make for a specified period:

  • seven years max, if you invest at least $3 million on those improvements;
  • two years max, if invest at least $500,000 on those improvements;
  • three years max, if you invest at least $10,000 and the value is not greater than 50% of the increased assessment; or
  • as defined by ordinance for a designated retail business.

Improvements include the rehabilitation of existing structures, so long as they are used for at least one of the following purposes:

  1. office space;
  2. retail space;
  3. permanent residential use;
  4. rental residential use;
  5. manufacturing;
  6. warehouse, storage or distribution;
  7. structured multilevel parking related to a mass transit system;
  8. information technology;
  9. recreation facilities;
  10. transportation facilities;
  11. mixed-use development.