- Corporate Business Tax Credits are provided for business entities to help lower business costs, encourage more investment in specific areas or growth in targeted industry sectors, and encourage development in certain locations.
- Insurance Reinvestment Tax Credit provides a 100% tax credit on insurance premiums for insurance companies willing to invest their capital with approved fund managers who invest that capital in growing Connecticut businesses. Funding opportunities include 25% committed to green technology businesses and 3% to pre-seed investments.
- Urban/Industrial Sites Reinvestment Tax Credit of up to 100%, up to $100 million is available to corporation locating in an urban area or on an industrial site. The minimum investment is: $5 million in distressed communities, $2 million for a historic preservation facility redeveloped for mixed use, or $50 million in all other communities. The amount of credits offered is based on the department’s extensive due diligence process. For urban sites, the investment must add substantial new economic activity, increase employment and generate significant additional tax revenues to the municipality and the state. For industrial sites, the investment must be made in real property, or in improvements to real property, located within Connecticut that has been subject to environmental contamination. The investment should return the property to a viable business condition that will add significant new economic activity, increase employment, and generate additional tax revenue to the state and the property’s municipality.
- Airport Development Zone Program provides a five-year 80% abatement of local property taxes on qualifying real estate and personal property (machinery and equipment) to new investments to the municipality’s Grand List as a direct result of a business expansion and/or renovation. 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).
- Bioscience Enterprise Corridor Zone – Companies involved in manufacturing, research associated with manufacturing and distribution warehousing may benefit from: (1) 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 (2) other benefits as stipulated in the Connecticut General Statutes.
- Corporate Business Tax Exemption – Investments that help your business create jobs and modernize may be eligible for tax relief, including: (1) all insurance companies, (2) certain banks, insurers and investment companies locating in the Hartford Financial Service Export Zone that conduct all business with non-U.S. persons, (3) companies that sell protected open space or Class I or II water company land to the state or certain entities, (4) non-U.S. corporations whose sole activities in CT are trading stocks, securities or commodities of your own account.
- Enterprise Corridor Zone – Companies involved in manufacturing, research associated with manufacturing and distribution warehousing (new construction/expansion only) as well as certain service companies that develop properties within this zone may receive 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
- Federal Opportunity Zone Tax Benefits allows investors who move any realized capital gains into a qualified Opportunity Zone Fund within 180 days of the asset sale to defer paying capital gains taxes on that gain until December 31, 2026 — or until they sell their Opportunity Zone Fund investment, whichever is earlier. Investors may also be able to minimize, or even eliminate, those taxes depending on how long they hold the opportunity zone fund investment.
- Manufacturing Plant Zone – Companies involved in manufacturing, research associated with manufacturing and distribution warehousing (new construction/expansion only) may benefit from (1) 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 (2) other benefits as stipulated in the Connecticut General Statutes. Certain service companies may also be eligible for these benefits based on several sliding scales.
- Railroad Depot Zone – Companies involved in manufacturing, research associated with manufacturing and distribution warehousing (new construction/expansion only) as well as certain service companies that develop properties within this zone may receive: (1) 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 (2) other benefits as stipulated in the Connecticut General Statutes. 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).
- Manufacturing and Biotech Sales and Use Tax Exemption provides a 100% sales tax exemption may be available for: (1) 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; and (2) 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.
- Manufacturing Machinery and Equipment Tax Exemption provides a five-year, 100% property tax exemption for eligible machinery and equipment acquired and installed in a manufacturing or biotechnology facility.
- Real and Personal Property Tax Exemptions are available based on the following: (1) 100% tax exemption for five years for newly acquired and installed machinery and equipment eligible for five- to seven-year depreciation; (2) 100% exemption for inventories; (3) 30-100% exemption for increased assessment for personal property for manufacturers; (4) 20-50% exemption for eligible real property improvements for two to seven years, depending on the investment amount; (5) 100% exemption for installed and used unbundled software, machinery and equipment; and (6) 100% exemption for five years for new commercial motor vehicles weighing over 26,000 lbs. that are used to transport freight for hire and all new commercial vehicles weighing over 55,000 lbs.
