Distressed Municipalities - Reimbursement of Tax Loss for Exemptions

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.

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.

The Commissioner of the Department of Economic and Community Development (DECD) designates municipalities to participate in the statewide Enterprise Zone Program based on statutory eligibility requirements.

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.

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 municipalities only. Eligible for the reimbursement are municipalities that have one or more of the following DECD-approved designated areas: distressed municipality, targeted investment community, enterprise zone or airport development zone. (See Enterprise Zones)

DECD - Distressed Municipalities

2023 Distressed Municipalities List

Municipal Claim Forms: 

 Real Property
 Personal Property
 Real Property Enterprise Zone
 Personal Property Enterprise Zone
 Personal Property Enterprise Zone/ Tech Upgrade
 Urban Jobs Program Annual Renewal


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 Auditing and Grant Information: 

Office of Policy and Management

Jennifer L. Gauthier, (860) 418-6342 or Jennifer.Gauthier@ct.gov


For Application and Program Information:

Department of Economic and Community Development

Susan Chen, (860) 500-2456 or DECDEnterpriseZone@ct.gov