Overview

A new tool to facilitate private sector job creation:

• Transparent — clear, simple incentive for companies to evaluate when considering growing in or relocating to Connecticut.
• Earn-As-You-Grow — Tax rebate jobs earned as jobs are created and maintained over time
• Targeted – industries and localities that build on our strengths of today — and the ecosystems we want to grow in our economy of tomorrow.

Eligibility

• Eligible employers who meet the below requirements will earn a tax rebate equal to 25% of the withholding taxes from net new employees.
• Employers that locate or grow in a Distressed Municipality or Opportunity Zone are potentially eligible for a 50% tax credit.

Program Requirements

• Create a minimum of 25 new FTEs
• Minimum wage of $37,500
• Salaries must be 85% of the median household income of the municipality where the jobs will be located.
• Tax rebate payout is earned in year 3 through 7. Years 8 and 9 are discretionary.

Priority Considerations

Businesses creating jobs in economic-based industries, particularly those involved in manufacturing, corporate headquarters, life sciences, entertainment/digital media, clean energy, insurance/financial services, R&D facilities, aerospace/defense, and information technology sectors, will receive priority.

Example:

Company in focus area creates 25 jobs

• Salary per job: $100,000
• Income tax rate: 5.5%*

Net new tax revenue over seven years: $962,500

• State’s portion:    25% $790,625  – 50% $618,750
• Company rebate: 25% $171,875 – 50% $343,750

• If you are approved, you will be responsible for all closing costs before state funds are disbursed and you must retain your contracted employment obligations for 24 consecutive months prior to disbursement of any funds.

• Download Map of Distressed Municipalities / Opportunity Zones*

• Please complete the Please complete the Department of Labor Release Form along with your application. along with your application.

• Please click the link to review a sample application.

• Effective January 1, 2024, per C.G.S. Sec. 32-7t; if a Company intends to hire individuals with an Intellectual or Developmental Disability (IDD), additional incentives may apply. Please advise at the time of application.

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Contact

For more information, please contact Tricia Paesani, at (860) 500-2415 or at Tricia.Paesani@ct.gov.