Defense Plant Zone

Overview

This zone provides relief is for municipalities that have been severely impacted by a prime defense contract cutback or closure of a major aerospace or a 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% abatement of local property taxes on qualifying real estate and personal property (machinery and equipment)—the investment must be new to the municipality’s Grand List as a direct result of a business expansion and/or renovation, and 
  • other benefits as stipulated in the Connecticut General Statutes.
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For qualifying service companies: Certain service companies may also be eligible for these benefits upon meeting State requirements. 

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.   

Statutory Reference

CGS Sec. 32-56.

How to Apply

For businesses seeking tax incentives and other benefits: Across all cities and towns that are approved by the DECD to participate in the Enterprise Zone program:

Step One
  1. Before starting any project, the business must first submit a formal request through the local economic development office of the municipality in order to obtain a Preliminary Questionnaire.
  2. If pre-qualified, the business would receive from the DECD a formal application and an invitation to apply.
Step Two
  1. The business submits a complete application with required documentation to the DECD prior to October 1 of the year in which the project will be completed.
  2. If approved, DECD would issue a Certificate of Eligibility.

Contact

To view the designated municipal Enterprise Zone coordinators for this zone type, please refer to the Contact section.