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State & Federal Resources

All Businesses/Development

Federal Opportunity Zone Tax Benefits

The Federal Opportunity Zone program was designed to encourage private investment in rebuilding American cities. Eligible investors who make qualifying investments can benefit from significant federal tax advantages including deferral of capital gains and potential reduction of deferred capital gains tax liability.

Angel Investor Tax Credit

To encourage individuals to invest in promising startups that need capital to grow, the State of Connecticut has created the Angel Investor Tax Credit Program. Administered through Connecticut Innovations, this program provides qualified investors with a 25% credit against Connecticut’s state income tax when they invest at least $25,000 in qualifying businesses.

Corporate Business Tax Exemption

Investments that help your business create jobs and modernize may be eligible for tax relief, including: insurance companies, banks, investment companies, trading of stocks or commodities, and more.

Accumulated R&D Tax Credit Expansion Program

Does your business have a capital project, either planned or underway, that will increase employment, expand your business or generate substantial returns to the state economy? If so, you may be able to accumulate your unused tax credits until they can better benefit you.

Real and Personal Property Tax Exemptions

To encourage businesses to continue to create jobs and modernize their operations, Connecticut exempts certain expenses from Connecticut property taxes. Different levels of real and personal property tax exemptions are available for different types of investments.

Sales and Use Tax Exemption

You may apply for tax relief on the purchase of tangible personal property for qualifying retention and expansion projects, or projects that significantly contribute to a targeted industry cluster.

Urban/Industrial Sites Reinvestment Tax Credit

Your company can earn a corporate tax credit of up to 100% for an investment, up to a maximum of $100 million if locating in an urban area or on an industrial site.

HUBZone Program

The HUBZone Program is a Federal program created by the United States Small Business Administration (SBA). It targets small companies that operate and employ people in Historically Underutilized Business Zones for federal government work contracts.

Green Buildings Tax Credit

Any real estate development project that is designed to meet LEED Green Building Rating System gold certificate or other equivalent certification and does not exceed 70% of the energy use allowed by the state energy code for new construction (or 80% for renovations/rehabilitation) are eligible for tax credits equivalent to a percentage of allowable costs based on the type of project and the LEED Rating achieved.

Small Business Boost Fund
  • Supported by the Connecticut Department of Economic & Community Development, the Connecticut Small Business Boost Fund is more than a financial assistance program. It’s a one stop shop for business owners and nonprofits to get support and guidance before, during and after the loan application process.
  • Working capital loans are provided between $5,000 and $500,000 (subject to eligibility) with no origination fees, fixed 4.5% interest rate, and 60- and 72-month payback terms depending on loan size.
  • During the loan process, applicants receive support from a network of community lenders and technical assistance providers with decades of experience working with small businesses. This program has an equity-minded approach focused on communities that have historically experienced barriers to accessing working capital.
Brownfield Remediation Grants and Loans

Businesses planning to develop in brownfield locations eligible for a variety of benefits, including negotiable low-interest, long-term loans, up to 4 million in grants, and a special fund for environmentally friendly dry cleaning businesses.

Historic Rehabilitation Tax Credit

Any building owner rehabilitating a certified historic structure for nonresidential use or both residential and nonresidential use can receive a tax credit equal to the lesser of the two: 25% of the projected qualified rehabilitation expenditures or 25% of the actual qualified rehabilitation expenditures. If affordable housing is created (and is compliant with the affordable housing certificate) then the tax credit rises to 30%. Read more about the tax credit and what rehabilitation expenditures are qualified towards the credit here.

Film and Media Business

Digital Media & Motion Picture Tax Credit

This tax credit program was established to encourage the production of digital media and motion pictures in the State of Connecticut. Eligible production companies can receive a tax credit of up to 30% on qualified digital media and motion picture production, pre-production, and post-production expenses incurred in the state.

Digital Animation Production Company Tax Credit

State-certified digital animation production companies engage in digital animation production activities on an on-going basis. A tax credit is given on a graduated scale based on expenses.

Film Infrastructure Tax Credit

Administered by the Office of Film, TV & Digital Media, a tax credit equal to 20% is available to any taxpayer that invests $3 million in a state-certified entertainment infrastructure project.

Film/TV/Digital Media Tax Exemptions

The Office of Film, TV & Digital Media offers incentives to encourage production in Connecticut. To that end, certain expenses associated with a production may qualify for tax exemptions. These exemptions include a hotel tax exemption, and sales tax exemptions.

Manufacturing Businesses

Manufacturing Machinery and Equipment Tax Exemption

Connecticut is committed to fostering the growth of its burgeoning advanced manufacturing and bioscience sectors. This five-year, 100% property tax exemption is available for eligible machinery and equipment acquired and installed in a manufacturing or biotechnology facility.

Qualifying Manufacturing Plant

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. Benefits include a five-year, 80% abatement of local property taxes on qualifying real estate and personal property 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.

Enterprise Zone Program

First in the nation to offer a statewide program of benefits to help targeted investment communities, Connecticut has greatly expanded the number of State-approved municipalities that may offer the various enterprise zone benefits — from the original 6 cities and towns in 1982, to over 45 participating municipalities in 2021.

There are 10 types of zone designations in Statutes that authorize the State and approved municipalities to offer various incentives, with goals to encourage new economic development, lower the cost of doing business in Connecticut, increase private investment, expand the local tax base, re-use underused properties, grow important industry clusters, and expand job opportunities for zone residents.