SPOTLIGHT PROGRAMS

JobsCT Grant Program: Eligible employers who meet certain eligibility requirements, including the creation of a minimum of 25 new jobs, will earn tax rebates equal to 25% of the withholding taxes from net new employees.  Employers that locate or grow in a Distressed Municipality or Opportunity Zone are potentially eligible for a 50% grant.  Project salaries must be at least 85% of the median household income of the municipality where the jobs will be located and minimum wage for credit is $37,500. The grant can be earned for up to 9 years.

Sales and Use Tax Exemption: The State has the discretionary authority to provide an exemption from state sales tax on the purchase of construction materials and furniture, fixtures and equipment for businesses that make capital investments and create jobs. Equipment, tools, machinery, supplies, materials, and fuel used in renewable energy and clean energy technology, the manufacturing or fabrication of finished products, or the biotech industry may be eligible for 100% exemption from state sales and use tax.

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TAX CREDITS

Urban and Industrial Sites Reinvestment (URA) Tax Credit Program: This program provides the discretionary authority to offer tax incentives to eligible revitalization projects. Companies can earn a corporate tax credit up to 100% or $100 million for an investment in an urban area or industrial site. The project must either invest $5 million in a distressed community, $2 million for historic preservation redeveloped for mixed use, or $50 million in all other communities. The program caps total expenditure for credits that can be issued at $200 million. Credits can be used over a ten-year period. If a company does not use the credit in the year allowed, they may carry it for five consecutive years that follow until the full credit is used. It may also be assigned (sold) to another taxpayer so long as it is claimed by the taxpayer in a taxable year for which the company would have been eligible for the credit.  A company cannot use this credit if they are also claiming the 25% corporate tax credit offer by enterprise zones.

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Research and Development Tax Credit: Credit is equal to 20% of R&D expenditures in Connecticut in the current income year exceeding R&D expenditures of the prior taxable year. Unsold credits can be carried forward up to 15 years, and for companies with less than $70 million in gross income credits are partially refundable.

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TAX EXEMPTIONS

Real and Personal Property Tax: Municipalities have the discretion to provide a negotiated exemption from real and personal property tax for up to 30 years. State statutes also provide for exemption of tax on certain newly acquired and installed machinery, inventories, unbundled software, commercial motor vehicles, dependent on certain conditions.

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Data Center Tax Exemptions: Passed in March 2022, the Data Center Tax Incentive provides sales and use tax exemptions and business personal property tax exemptions to owners and developers of qualifying data center facilities. The legislation also provides for an exemption from any future financial transaction taxes that the state may impose in the future. To qualify for a 20-year term, data center facilities must make an investment of at least $50 million if the facility is locating in a qualifying Enterprise Zone or federal opportunity zone or make an investment of at least $200 million if locating elsewhere. For a 30-year term, investment must be at least $200 million in an opportunity zone and $400 million elsewhere.

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Enterprise Zone: Businesses that locate inside an Enterprise Zone, or within a community which contains a zone, may be eligible for an abatement on qualified real estate and personal property (machinery and equipment). To qualify, the business must renovate by investing 50% of the facility’s prior assessed value, construct/expand an existing facility, or acquire a new facility that has sat idle for a stated time frame that is determined by number of project employees.

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‍Last Updated: April 2023