Distressed Municipalities - Reimbursement of Tax Loss for Exemptions


Program Description

The Distressed Municipalities Property Tax Reimbursement Program provides a 5-year state reimbursement of a portion of the property tax loss towns sustain as a result of property tax exemptions granted to qualified manufacturing facilities located in designated municipalities. The Commissioner of the Department of Economic and Community Development (DECD) designates these municipalities.

The Commissioner of the DECD must certify manufacturing companies, service facilities and the property they own as eligible for these tax reductions, which are available in certain towns only. Eligible are towns that have one of the following designations: Targeted Investment Community, Enterprise Corridor Zone, Contiguous Municipality Zone, Defense Plant Zone or Manufacturing Plant Zone. (Link to Enterprise Zones)

Connecticut reimburses eligible towns for up to 50% of the revenue loss due to these exemptions. Reimbursements are prorated, if necessary, to the amount of the appropriation. Payments are made once a year on December 31st.

Updated annually, the Distressed Municipalities' lists identify the state’s most fiscally and economically distressed municipalities and are used by state agencies to target funds for needs which may include housing, insurance, open space, brownfield remediation and economic development programs, among others.

DECD - Distressed Municipalities

Eligible Municipalities List

2018 Distressed Municipalities List

The Municipal Claim Forms are available below in PDF Fillable format.

 Manufacturing
 Real Property
 Personal Property
  M-46B 
 Real Property Enterprise Zone
 Personal Property Enterprise Zone
 Personal Property Enterprise Zone/ Tech Upgrade
  M-46C3
 Urban Jobs Program Annual Renewal

Tips on completing a PDF form

Statutory References: Connecticut General Statutes (CGS): Sections 12-81(59), (60) and (70), 12-81k and 32-9p through 32-9s, and 32-80.

Regulatory References: Regulations of Connecticut State Agencies: §32-9s-1 and §32-9s-2.

For Further Information, Please Contact:
Patrick Sullivan: phone (860) 418-6406 or patrick.j.sullivan@ct.gov

Edward Bona: phone (860) 270-8252 - fax (860) 270-8157 - e-mail Edward.Bona@ct.gov