Enterprise Zones were created to encourage
the reuse of established industrial areas of the state.
Businesses can take advantage of a complete package of state
and local incentives, electric utility economic development
rates, and the generally more affordable rents in these
older industrial areas.
The Connecticut Department of Economic Development, in
partnership with participating local communities, provides
companies with a Certificate of Eligibility for Enterprise
Zone Benefits.
The following benefits are available to assist the growth
of sound business and residential development to firms that
move to or expand within an Enterprise Zone.
Benefits
Manufacturing & Service Businesses
A five-year 80% abatement of local property taxes on real
estate improvements and personal property acquisitions.
A ten-year 50% corporate business tax credit, and a grant
up to $1,500 per position, when at least 30% of new employees
are either residents of the zone or eligible for federal
job training subsidies. The maximum grant is $75,000.
Exemption from state real estate conveyance taxes and sales
taxes on manufacturing replacement parts.
Job training and placement assistance.
Commercial & Residential Building Owners
Minimum seven-year graduated tax deferral of increased taxes
resulting from real property improvements. The income of
occupants of residential properties must not exceed 200%
of the median incomes of the municipalities.
Exemption from state real estate conveyance taxes.
Additional local abatements may apply, but must be negotiated
up front.
Electric Utility Rates
Special Economic Development Rates and Riders may apply
to businesses locating within Enterprise Zones. Businesses
that qualify are eligible for discounts on electric rates.
Eligibility
Businesses:
Manufacturers - SIC code numbers from 2000-3999.
Service Industries - Companies providing direct service
to the public are not eligible.
Businesses in the Enterprise Zone making significant investment
in facility renovation or expansion.
Buildings:
Must be either newly constructed or substantially renovated
or expanded, or facility must be acquired by new owners
after being idle for a minimum period of time, generally
one year.
May be acquired by purchase, or by lease for a certain minimum
term.
Should the company decide to move within that term, the
existing Certificate of Eligibility stays with the building
if new occupants move in within 90 days.
Urban Jobs Program
Available to eligible companies that operate in Targeted
Investment Communities (any community with an Enterprise
Zone), but are not located within the Enterprise Zone. Groton
& New London are targeted investment communities.
A ten-year 25% corporate business tax credit. Also provides
many of the incentives offered by an Enterprise Zone location.
The following towns along the I-395 Corridor are in the
Enterprise Zone: Griswold, Killingly, Lisbon, Plainfield,
Putnam, Sprague, Sterling and Thompson.
