CONNECTICUT INCENTIVES SUMMARY

Enterprise Zone and Target Investment Community Incentives
A statewide program to assist over 45 participating municipalities. The program supports 10 zone designations to offer various incentives to support state economic development goals. Manufacturing, research tied to manufacturing and distribution, and certain non-manufacturing service companies are eligible for a five-year, 80 percent abatement of local property taxes on real and personal property. Companies must be new taxpayers in the municipality. New construction and expansion projects are eligible.

JobsCT Tax Rebate Program
Companies may receive a grant of 25 percent of withholding tax from net new employees. Salaries must equal or exceed a minimum wage of $37,500, and be 85 percent of the median household income of the municipality where jobs will be located. Companies must create at least 25 new jobs. Grant-in-arrears payout is earned in years three through seven. Years eight and nine are discretionary.

Manufacturing Innovation Fund (MIF)
The program supports the advanced manufacturing sector with loans and grants through a $75 million MIF.

Sales and Use Tax Exemption
Exemptions from the 6.35 percent state sales tax are available for qualifying capital equipment and construction materials.

Urban and Industrial Sites Reinvestment Tax Credit Program
Under the program, the state may provide a dollar-to-dollar tax credit up to 100% of the capital investment, with a minimum of $5 million in distressed communities and $50 million in all other communities. The tax credits may be used over ten years; unused credits may be carried forward for five consecutive years or transferred to another corporate taxpayer. If transferred, the buyer must use the credit in the same year earned.