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.

Manufacturing and Biotech Sales and Use Tax Exemption

Overview

Connecticut is home to a dynamic ecosystem of growing advanced manufacturing and bioscience companies. To foster the development of those sectors, Connecticut offers sales/use tax exemptions for investments those businesses make that help create jobs and modernize operations.


Eligibility

A 100% sales tax exemption may be available for:

  • purchases of machinery used directly in the manufacturing production process, as well as materials, tools and fuel used in the manufacture or fabrication of finished products;
  • sale of and the storage, use or other consumption of machinery, equipment, tools, materials, supplies and fuel in the biotechnology industry.

A 50% tax exemption on machinery, tools, fuel and equipment may be available for those not meeting the requirements for the full exemption.