Incentive Zones
Enterprise Zone, Targeted
Investment Community and
Arts & Entertainment Benefits
The Enterprise Zone Targeted Investment Community
and Arts & Entertainment District programs are designed to help
manufacturers, a select number of companies within certain Standard
Industrial Code (SIC) classifications, and certain entertainment uses,
to locate within specific geographic areas of the city. The entire City
of Bridgeport is a Targeted Investment Community. The Enterprise Zone is
made up of sixteen Bridgeport census tracts. The Bridgeport
Entertainment District encompasses all of the downtown as well as
certain contiguous areas. The SIC codes that qualify include all
manufacturers, certain service firms and a select number of arts &
entertainment related businesses. SIC codes can be obtained on the
Connecticut Department of Economic and Community Development website at
the
DECD: State of Connecticut Enterprise Zone Program
In addition to having a qualified SIC code, to qualify for either
Targeted Investment Community (TIC) or Enterprise Zone (EZ) or
Entertainment District benefits the proposed project must meet one of
the following criteria:
a)
Substantial renovation of an existing facility involving capital
expenditures of at least 50% of the assessed value of the facility prior
to renovation. The only costs that count towards the 50% threshold are
those incurred for work that required a building permit.
b)
Construction of a new facility.
c)
Acquisition of a facility by new owners after having been idle for at
least one year prior to acquisition. Idleness is determined if the
facility was unused, unoccupied, or substantially under-utilized for one
year prior to acquisition. Acquisition can be a purchase or lease.
Leases must be at least for a term of five years with a five-year option
to renew. If space is leased, the applicant for the real property tax
abatement will be the tenant. The lease should pass responsibility for
payment of appropriate taxes to the tenant. When certified for
benefits both the landlord and tenant receive notice of eligibility for
abatement.
Approval of TIC benefits is dependent upon the
ability to demonstrate that the incentives are an inducement and the
business has an economic need that the incentives will alleviate or the
project will represent a net economic benefit to the state and/or
municipality. TIC benefits are provided at the discretion of the
Commissioner of the DECD.
Targeted Investment Community Benefits
·
a five-year, 80% abatement of local property taxes on real
and personal property
·
a ten-year, 25% corporation business tax credit
Enterprise Zone Benefits
·
a five-year, 80% abatement of local property taxes on real
and personal property.
·
a ten-year, 25% or 50% corporation business tax credit **
·
a five-year, 80% abatement of local property taxes on real
and personal property.
·
a ten-year, 25% or 50% corporation business tax credit **
** The credit can increase to 50% if the
corporation employs 150 or more full-time employees (or 30% of the
total full-time employees) who are enterprise zone residents or
Bridgeport residents are eligible for training under the Federal
Comprehensive Employment Training Act (or its successor program).
The 25% and 50% corporate
income tax credit is determined by obtaining the mean of the following
two fractions and multiplying the above result by 25% or 50%.
* A position is directly attributable to a CT
facility if all of the following apply:
-
The work is performed or the base of operations is at the
zone facility.
-
The position did not exist prior to the acquisition,
construction renovation or expansion.
-
If not for the acquisition,
construction, renovation or expansion ,the position would not exist
Additional Incentives
The HUBZone program is a
federal empowerment contracting program which provides contracting
preferences to businesses located within the HUBZone. Nineteen census
tracts make up Bridgeport’s HUBZone. For a company to qualify for this
special federal contracting opportunity, it must be located in the
HUBZone, the company must be owned and controlled by one or more U.S.
Citizens and at least 35% of its employees must be HUBZone residents.
Addresses can be checked for HUBZone status and additional information
can be found at the SBA website,
SBA- HUBZone. Also see
HUBZone- Frequently Asked Questions
for description of HUBZone contracting preferences.
A Foreign Trade Zone is a
secure and enclosed area, located in or adjacent to a port of entry. It
is considered outside of the United States for purposes of Customs Duty
payments. Most foreign and domestic material or merchandise may be moved
into a FTZ without being subject to U.S. Customs Duties on that
merchandise. Bridgeport has FTZ 76 located in six buildings and sites
within the City of Bridgeport. The International Enterprise Park at 939
Barnum Avenue is the only site currently being used for its FTZ
benefits. The entire Bridgeport FTZ contains nearly 500 acres.
Sub-zones can also be created anywhere within 30 miles of Bridgeport’s
FTZ. While in the FTZ, the merchandise may be stored, manufactured,
repackaged, exhibited or combined with domestic goods to qualify for a
lower duty. Duties can, therefore, be deferred until the merchandise
leaves the FTZ and enters U.S. territory for domestic consumption. If
merchandise is exported to a foreign destination, no Customs Duty is
levied. Merchandise is protected 24 hours a day in compliance
with U.S. custom security requirements. Cash flow may be improved by
deferring duty payments as long as merchandise is stored in the FTZ.
Bridgeport’s Foreign
Trade Zone 76 is administered by the Bridgeport Port Authority. Further
information can be obtained on utilizing the foreign trade zone, by
contacting:
Joseph Riccio, Executive
Director
Bridgeport Port Authority
330 Water Street
Bridgeport, CT 06604
203-384-9777
bpa1@snet.net
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