Municipal Tax Abatements

Municipal Tax Abatements Overview Each Connecticut municipality can offer local tax abatements for both real estate and manufacturing machinery and equipment. They’re based on a sliding scale, depending on your level of investment. If you’re acquiring or leasing real property (or air space) in a Connecticut city or town, the local municipality can choose to freeze the assessment of the property and any improvements you may make for a specified period: seven years max, if you invest at least $3 million on those improvements; two years max, if invest at least $500,000 on those improvements; three years max, if you invest at least $10,000 and the value is not greater than 50% of the increased assessment; or as defined by ordinance for a designated retail business. Improvements include the rehabilitation of existing structures, so long as they are used for at least one of the following purposes: office space; retail space; permanent residential use; rental residential use; manufacturing; warehouse, storage or distribution; structured multilevel parking related to a mass transit system; information technology; recreation facilities; transportation facilities; mixed-use development.