Tax Abatement Incentives
City of
Bridgeport – Seven-year Graduated Deferral of Property Taxes
Additional real and personal property tax benefits, beyond those
provided by the State Enterprise Zone program can be obtained by
application pursuant to the City of Bridgeport’s Tax Incentive
Development Program. Any tax abatement approved would be
negotiated with the City of Bridgeport and be subject to approval by its
Common Council.
In order to qualify projects must:
(A)
have a minimum of three million dollars ($3,000,000) in estimated
costs of construction or rehabilitation, excluding the costs of real
property acquisition or
(B)
if located in an Enterprise Zone, have a minimum of one million
dollars ($1,000,000) in estimated costs of construction, rehabilitation
and/or machinery and equipment excluding the costs of real property
acquisition.
Connecticut Corporate Income
Tax Credits
50-100% sales tax exemption on
machinery, raw materials, tools and fuel used in the manufacture or
fabrication of finished products. Further information can be found at
Manufacturing Recovery Act.
Work
Opportunity and Welfare-to-Work Tax Credit
Federal tax credits designed to encourage employers to hire individuals
who have consistently had the most difficulty in securing employment.
The maximum tax credit per new hire for the Work Opportunity Tax Credit
is $2400. The maximum tax credit per new hire for the Welfare-to-Work
Tax Credit is $8500. Further information can be found at
CT DOL Tax Credits
Urban Site Investment Tax Credit
An
investor in an Urban Site Development Project may be eligible to receive
a dollar for dollar corporate tax credit of up to 100% of their
investment up to a maximum of $100,000,000.
An eligible Urban Site Investment Project is defined as an investment
that will add significant new economic activity, increase employment in
a new facility and generate significant additional tax revenues to the
municipality and the state. Investments can be made either
directly by the taxpayer or indirectly through an investment fund. If
the investment is made by an investment fund, the fund must have a minimum asset value of $60 million.
Additionally, the fund
must have been established for the specific purpose of making
investments under this program and must be managed by a certified
Program Fund Manager. If the investment is made directly by the
taxpayer, the investment must be a minimum of $5
million. There is no minimum investment amount for indirect investments
made by Certified Fund Mangers.
Assignment of Tax Credits (Salability)
Any taxpayer allowed this credit may
assign the credit to another taxpayer provided that taxpayer claims the
credit in a taxable year for which the assigning taxpayer would have
been eligible to claim the credit. The taxpayer assigned the
credit cannot further assign the credit. The taxpayer may not
claim this tax credit and the 25% corporate tax credit allowed under the
provisions of the enterprise zone program.
Carry-Forward
Any credit not used in the income year for which it was allowed may be
carried forward for the five immediately succeeding income years until
the full credit has been allowed.
Property Tax Benefit
The real property of an urban site investment project may be
eligible to receive a five-year 50% property tax abatement on that
portion of the property tax due that is attributable to the increased
value of such property as a result of the approved remediation,
construction or other development. The abatement shall cease upon
the sale or transfer of the property for any other purpose unless the
municipality consents to its continuation. The municipality may also
establish a recapture provision in the event of sale, provided such
recapture shall not exceed the original amount of taxes abated.
This property tax abatement will not be granted if the real property in
question qualifies for abatement or exemption of property taxes under
any other provision of the general statutes.
Schedule
The corporate tax credit is dispersed to the recipient over a
ten-year period on the following schedule:
Years 1 – 3 0% each year
Years 4 – 7 10% each year
Years 8 – 10 20% each year
Additional
information can be found at
DECD Urban
Sites Remedial Action Program
This program is designed to eliminate Brownfields and encourage private
investment in environmentally contaminated properties. An
investor, in an Industrial Site Development Project, may be eligible to
receive a dollar for dollar corporate tax credit of up to 100% of their
investment up to a maximum of $100,000,000. An eligible Industrial
Site Investment Project is defined as an investment made in real
property, or in improvements to real property, located within
Connecticut that has been subject to environmental contamination. The
investment will return the property to a viable business condition that
will add significant new economic activity, increase employment and
generate additional tax revenue to the state and the municipality in
which the property is located.
Investments can be made either directly by the taxpayer or indirectly
through an investment fund. If the investment is made by an investment
fund, the fund must have a minimum asset value of $60 million.
Additionally, the fund
must have been established for the specific purpose of making
investments under this program and must be managed by a certified
Program Fund Manager. If the investment is made directly by the
taxpayer, the investment must be a minimum of $5 million.
There is no minimum investment amount for
indirect investments made by certified Fund Managers.
Assignment of Tax Credits (Salability)
Any taxpayer allowed this credit may assign the credit to another
taxpayer provided that taxpayer claims the credit in a taxable year for
which the assigning taxpayer would have been eligible to claim the
credit. The taxpayer assigned the credit can not further assign
the credit. The taxpayer may not claim this tax credit and the 25%
corporate tax credit allowed under the provisions of the enterprise zone
program.
Carry-Forward
Any credit not used in the income year for which it was allowed may be
carried forward for the five immediately succeeding income years until
the full credit has been allowed.
Property Tax Benefit
The real property of an "industrial site investment project" may be
eligible to receive a 50% property tax abatement on that portion of the
property tax that is attributable to the increased value of such
property as a result of the approved remediation, construction or other
development. The abatement shall cease upon the sale or transfer
of the property for any other purpose unless the municipality consents
to its continuation. The municipality may also establish a recapture
provision in the event of sale, provided such recapture shall not exceed
the original amount of taxes abated. This property tax abatement
will not be granted if the real property in question qualifies for
abatement or exemption of property taxes under any other provision of
the general statutes.
Schedule
The corporate tax credit is dispersed to the recipient over a ten-year
period on the following schedule.
Years 1 – 3 0% each year
Years 4 – 7 10% each year
Years 8 – 10 20% each
year
Additional
information can be found at
Industrial Site Investment Tax Program
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