A Summary of Connecticut's Enterprise Zone Program

A Summary of Connecticut's Enterprise Zone Program Overview First in the nation to offer a statewide program of benefits to help targeted investment communities, Connecticut has greatly expanded the number of State-approved municipalities that may offer the various enterprise zone benefits — from the original 6 cities and towns in 1982, to over 45 participating municipalities in 2021. There are 10 types of zone designations in Statutes that authorize the State and approved municipalities to offer various incentives, with goals to encourage new economic development, lower the cost of doing business in Connecticut, increase private investment, expand the local tax base, re-use underused properties, grow important industry clusters, and expand job opportunities for zone residents. Please note that the information below is only intended to provide a summary overview of the program; please refer to the State Statutes for authorizing information and Statutory requirements. Types of Zones Enterprise Zone (targeted investment communities) Enterprise Corridor Zone  (public investment communities) Targeted Investment Communities (those with an approved Enterprise Zone) may also designate these areas which may qualify for Enterprise Zone-level benefits: Entertainment District Qualified Manufacturing Plant Railroad Depot Zone Urban Jobs Created through the Urban Jobs Program: Airport Development Zone Bioscience Enterprise Corridor Zone Contiguous Municipality Zone Defense Plant Zone Manufacturing Plant Zone Key Incentives of Traditional Enterprise Zones Companies involved in with manufacturing and distribution warehousing (new construction/expansion only), as well as certain service companies, that develop properties in an Enterprise Zone or a zone that is eligible for Enterprise Zone-level benefits could 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, and other benefits as allowed by the Connecticut General Statutes. Eligibility for Businesses These programs are designed to encourage capital improvements to land and/or buildings. Businesses applying for benefits under this program must be prepared to either: renovate an existing facility by investing at least 50% of the facility’s prior assessed value in the renovation; OR construct a new facility or expand an existing facility; OR acquire a facility that has been idle for a stated minimum timeframe (sliding scale dependent on average number of employees for previous six months): (if 19+ employees) at least one year (if 6-19 employees) at least six months (if 5 or fewer employees) no idleness requirement applies If the applicant is leasing this qualifying facility, the lease must be for at least five years with the option at that point to either renew the lease for an aggregate term of not fewer than 10 years or buy the facility. If the business averages fewer than 10 employees, those requirements may be reduced to aggregate leases of fewer than six years or the option to purchase after three years. Some zones might specify a range of North American Industrial Classification System (NAIC) codes, priority industry clusters, and/or pre-approved non-manufacturing and service business operations such as those listed in Addendum A; please refer to the Related Resources section . Eligibility for Municipalities The State Statutes define the requirements for each of the various zones.  Some Enterprise Zone designations might consist of a primary or secondary census block, or several contiguous tracts within a municipality, and/or other requirements.