Qualifying Manufacturing Plant

Overview

Any Targeted Investment Community with a manufacturing plant that has at least 500,000 square feet may apply to have that facility designed as a Qualified Manufacturing Plant. This designation can serve to encourage the renovation/refurbishment of that facility. 

Key Incentives for Businesses

Companies involved in manufacturing, research associated with manufacturing and distribution warehousing (new construction/expansion only) as well as certain service companies that develop property within this zone may receive:

  • a five-year, 80% abatement of local property taxes on qualifying real estate and personal property (note: the company must be new to the municipality’s grand list as a direct result of a business expansion or renovation); and
  • a 10-year, 25% credit on the portion of the corporate business tax that is directly attributable to a business expansion or renovation project, as determined by the Connecticut Department of Revenue Services. The credit may increase to 50% based on number of new jobs created.

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.

Eligibility for Businesses

Since these programs are designed to encourage capital improvements to land and/or buildings, businesses must be prepared to either renovate an existing facility by investing at least 50% of its pre-acquisition value in the renovation, OR construct a new facility, OR expand an existing facility, OR acquire a facility that has been idle (minimum period of idleness depends on average number of employees).

 

Note: if the applicant is leasing this qualifying facility, the lease must be for at least five years with the option at that point to either 1) renew the lease for an aggregate term of not less than 10 years or 2) buy the facility. If the business averages fewer than 10 employees, those requirements may be reduced to aggregate leases of not less than six years or the option to purchase after three years.

 

How to Apply

  1. A business must first submit a preliminary application to the Department of Economic and Community Development.
  2. If the applicant meets all requirements, a formal application will be provided.
  3. That application — along with any additional required documents — must be submitted prior to October 1 of the year in which the project will be completed. 
  4. If approved, DECD will issue a Certificate of Eligibility within a few weeks.

Contacts

To date, Bristol and New Britain are the only Targeted Investment Communities that have received such a designation for specific facilities within their municipalities. We encourage you to contact them to learn more.

BRISTOL

Justin Malley

Executive Director

Bristol Development Authority
111 North Main Street, # 6
Bristol, CT 06010 
(860) 584-6187

Fax: (860) 584-7800

justinmalley@bristolct.gov

 

NEW BRITAIN

William Carroll
Economic & Business Development Director
Economic Development Office
27 West Main Street Rm. 209
New Britain, Ct 06051
Tel: (860) 229-1665 x12
(860) 826-3433
(860) 416-1751  Cell
Fax: (860) 223-8341
bill.carroll@newbritainct.gov