A five-year, 80% abatement of local property taxes on qualifying real and personal property, subject to the property being “new to the grand list,” (building must be complete and application to State must have been approved prior the October 1^st of any year) of the municipality as a direct result of a business expansion or renovation project, or in the case of an existing building, having met the vacancy requirement. (The vacancy requirement is listed above) The property tax abatement is for a full five-year period and takes effect with the start of the first full assessment year following the issuance of a “Certificate of Eligibility” 

A ten-year, 25% credit on that portion of the state’s corporation business tax that is directly attributable to a business expansion or renovation project as determined by the Connecticut Dept. of Revenue Services.  The corporation tax credit is available for a full ten year period and takes effect with the start of business’ first full fiscal year following the issuance of a “Certificate of Eligibility” The corporate tax credit increases to 50% if a minimum of 30% of the new full time positions are filled by either zone residents or are residents of the municipality and are JTPA eligible.   

As of January 1, 1997, newly formed corporations located in a zone qualify for a 100% corporate tax credit for their first three taxable years and a 50% tax credit for the next seven taxable years.  This is subject to if the corporation has at least 375 employees at least 40% of which are either zone residents or are residents of the municipality and who qualify for the Job Training Partnership Act, or has less than 375 employees at least 150 of which are zone residents or are residents of the municipality and who quality for the Job Training Partnership Act.  

Public Act 96-264 Any businesses engaged in biotechnology, pharmaceutical, or photonics research, development or production, with not more than three hundred employees are eligible for Enterprise Zone benefits if they are located anywhere in a municipality with (1) a major research university with programs in biotechnology, pharmaceuticals, or photonics and (2) an Enterprise Zone. Benefits are subject to the same conditions as those for businesses located in an Enterprise Zone.  
 
 
 

In addition to being located in a “Zone” businesses must qualify for the above listed benefits. One of the following must take place:  

• Substantial renovation of an existing facility involving capital expenditures of a t least 50% of the assessed value of the facility prior to its renovation. All renovation activities must be permitted by the town in order for their value to be recognized. The only costs that matter in meeting the 50% test are those costs that were incurred for work that required the use of a building permit.
• Construction of a new facility. The expanded portion of an existing facility is considered new construction.

OR  

• Acquisition of a facility by new owners after having been idle for at least one year prior to acquisition. Within an Enterprise Zone, the idleness requirement does not apply to companies with an average of five or fewer employees in the six months preceding acquisition of the facility, and is at least six months for businesses that have an average of between six and nineteen employees in the preceding six months.  A one year idleness is required if there are more than nineteen employees involved.

The Putnam Economic and Community Development Office is here to help. Please contact us for more information and locations included the Enterprise Corridor Zone.