C
onnecticut offers a range of tax incentives to encourage commercial real estate investment, property development, and business expansion or relocation within the state. These programs aim to stimulate economic growth, revitalize communities, and support job creation.

    Key incentives include:

    * Enterprise Zone Benefits: Businesses investing in designated areas can benefit from an 80% property tax abatement on qualified improvements for five years and a 10-year corporate business tax credit.

    * Urban and Industrial Site Reinvestment Tax Credit Program: Eligible projects may receive up to 100% of approved investment over ten years, with qualification requirements including investments of at least $5 million in distressed communities or $50 million elsewhere in the state.

    * Manufacturing Assistance Act Tax Incentives: Businesses involved in manufacturing can access grants and low-interest loans for facility expansion, equipment purchases, and job growth, as well as tax exemptions on certain property improvements.

    * Historic Preservation Tax Credits: Businesses rehabilitating certified historic buildings may be eligible for a 25-30% state credit and an additional federal credit of up to 20%.

    * Brownfield Remediation Tax Incentives: Grants covering up to 50% of remediation expenses, property tax abatements, and sales tax exemptions are available for contaminated or abandoned site redevelopment.

    * Opportunity Zones: Investors can benefit from deferral of capital gains taxes on prior gains reinvested into Qualified Opportunity Funds until the investment is sold, exchanged, or December 31, 2026.

    Proposed legislative developments include a Commercial-to-Residential Conversion Tax Credit and changes to property tax credits against personal income taxes. Businesses and investors should consult with advisors to ensure eligibility and compliance, stay informed on legislative updates, and coordinate with local economic development offices for additional resources and support.