Overview
Each Connecticut municipality can offer local tax abatements for both real estate and manufacturing machinery and equipment. They’re based on a sliding scale, depending on your level of investment.
If you’re acquiring or leasing real property (or air space) in a Connecticut city or town, the local municipality can choose to freeze the assessment of the property and any improvements you may make for a specified period:
- seven years max, if you invest at least $3 million on those improvements;
- two years max, if invest at least $500,000 on those improvements;
- three years max, if you invest at least $10,000 and the value is not greater than 50% of the increased assessment; or
- as defined by ordinance for a designated retail business.
Improvements include the rehabilitation of existing structures, so long as they are used for at least one of the following purposes:
- office space;
- retail space;
- permanent residential use;
- rental residential use;
- manufacturing;
- warehouse, storage or distribution;
- structured multilevel parking related to a mass transit system;
- information technology;
- recreation facilities;
- transportation facilities;
- mixed-use development.