Urban/Industrial Sites Reinvestment Tax Credit

Overview

Connecticut provides compelling tax incentives for companies seeking to revitalize urban and industrial sites, creating significant jobs and capital investment. In addition to tax incentives, businesses can tap into a full range of support services through state, federal and regional partners.

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Your company can earn a corporate tax credit of up to 100% for an investment, up to a maximum of $100 million if locating in an urban area or on an industrial site. The minimum investment is:

  • $5 million in distressed communities
  • $2 million for a historic preservation facility redeveloped for mixed use
  • $50 million in all other communities

The program caps total expenditures at $200 million. The commissioner must submit any requests for credits over $20 million to the legislature for its review and approval. The amount of credits offered is based on the department’s extensive due diligence process.

Eligibility – Urban Site 

Your investment must add substantial new economic activity, increase employment and generate significant additional tax revenues to the municipality and the state. 

Communities may participate if they have an Enterprise Zone, have been designated as a distressed municipality or have a population greater than 100,000.

Eligibility – Industrial Site

Your investment must be made in real property, or in improvements to real property, located within Connecticut that has been subject to environmental contamination. The investment should return the property to a viable business condition that will add significant new economic activity, increase employment, and generate additional tax revenue to the state and the property’s municipality.

Terms & Conditions

10-Year Timeframe
These tax credits can be used over a 10-year time period, but can’t be applied until the fourth year of the project.  Here’s the schedule:

Year  1 2 3 4 5 6 7 8 9 10
 Percentage 0 0 0 10 10 10 10 20 20 20

Assignment of Tax Credits (Salability)
If you’re allowed this credit, you may assign it to another taxpayer, provided the taxpayer claims the credit in a taxable year for which you would have been eligible to claim the credit. The taxpayer assigned the credit cannot further assign the credit.

You may not claim this tax credit if you are claiming the 25% corporate tax credit allowed under the provisions of the Enterprise Zone program.

Carry-Forward 
If you don’t use a credit in the income year for which it was allowed, you can carry it forward for the five consecutive income years that follow, until you have used the full credit.

Contact

For additional information or questions, contact Robert Rigney at the Office of Business Development (860) 500-2410 or email robert.rigney@ct.gov.