Overview

Once the state has designated an Enterprise Zone within a municipality, that municipality becomes known as a Targeted Investment Community. As long as certain conditions are met and the DECD Commissioner approves, that Targeted Investment Community may in turn designate an area within the municipality as an Entertainment District — which then becomes eligible for Enterprise Zone-level benefits.

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Key Incentives for Businesses

Eligible projects may benefit from:

• a 7-year 100% abatement of the municipal property taxes for improvements to real property in entertainment districts designated under CGS Sec. 32-76 in each of the seven full assessment years following the assessment year in which the improvement is completed.

Eligibility for Businesses

Once an Entertainment District is designated, projects eligible for Enterprise Zone-level benefits may involve facilities producing live or recorded multimedia products as well as the businesses that provide support services necessary to sustain such operations.   A list of eligible entertainment businesses, by North American Industrial Classification System (NAICS) number, is located in the Related Resources section.

Ineligible projects. Examples of some of the projects that are NOT eligible include:

• entertainment related to gambling or gaming facilities;
• facilities whose primary source of revenue is the sale of alcoholic beverages;
• video arcades and theme parks. 

The municipality may provide a 100%, seven-year property tax abatement for any real property improvement within the designated district. 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).

 

Statutory Reference

CGS Sec. 32-76

 

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.

Contacts