Manufacturing and Biotech Sales and Use Tax Exemption


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.


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.