Real and Personal Property Tax Exemptions

Overview

To encourage businesses to continue to create jobs and modernize their operations, Connecticut exempts certain expenses from Connecticut property taxes.

Eligibility

Different levels of real and personal property tax exemptions are available for different types of investments.

For newly acquired and installed machinery and equipment eligible for five- to seven-year depreciation, the real and personal property tax exemption is 100% for five years.
For inventories, the exemption is 100%.
For increased assessment for personal property for manufacturers, exemptions range from 30 to 100%.
Towns may also offer exemptions on eligible real property improvements for two to seven years. Depending on the investment amount, those investments may range from 20 to 50%
Once installed and used, unbundled software, machinery and equipment may also be eligible for up to a 100% exemption.
New commercial motor vehicles weighing over 26,000 lbs. that are used to transport freight for hire and all new commercial vehicles weighing over 55,000 lbs may qualify for a 100% exemption for five years.