Connecticut Economic Development Directory

Connecticut State Incentives

URBAN AND INDUSTRIAL SITE REINVESTMENT TAX CREDIT: Dollar-for-dollar corporate tax credit of up to 100 percent for an investment up to a maximum of $100 million in an urban area or an industrial project; minimum investment is $5 million in distressed communities and $50 million in all other communities.

FILM PRODUCTION & DIGITAL MEDIA TAX CREDIT: A tax credit equal to 30 percent of qualified digital media and motion picture production, pre-production and post-production expenses in the state that exceed $50,000.

JOB EXPANSION TAX CREDIT (JET): Connecticut businesses can be eligible for tax credits of $500 per month for each new full-time job created. If the new employee is receiving vocational rehabilitative services from the Bureau of Rehabilitative Services, receiving unemployment benefits or is a veteran employee who, at the time of hiring by the taxpayer, is a member of, was honorably discharged from or released under honorable conditions from active service in the armed forces, then the tax credit is increased to $900 per month.

RESEARCH AND DEVELOPMENT TAX CREDITS: A tax credit equal to 20 percent of the R&D expenditures in Connecticut in the current income year exceeding R&D expenditures of the prior taxable year; unused R&D credits can be carried forward and, for companies with gross income of $70 million or less, can be sold to the state for 65 percent of their value; credit equal to 100 percent of property taxes owed and paid on electronic data processing hardware peripheral equipment and software; credit may be applied against certain other Connecticut taxes.

CORPORATE BUSINESS TAX CREDITS: Financial institutions constructing new facilities and adding new employees can receive a credit of as much as 50 percent of the tax for up to 10 years; may be extended for an additional 5 years; based on size of the facility and level of employment.

CORPORATE BUSINESS TAX EXEMPTIONS: Available for:

• All insurance companies, Connecticut incorporated and non-Connecticut incorporated
• Corporate income, insurance premium and sales and use taxes for certain banks, insurers and investment companies locating in the Hartford Financial Service Export Zone that conduct all business with non-U.S. persons
• Capital gains from the sale of protected open space or Class I or II water company land to the state or certain entities
• Non-U.S. corporations whose sole activities in CT are trading stocks, securities or commodities of their own account

SMALL BUSINESS EXPRESS PROGRAM (EXP): Provides loans and grants to Connecticut’s small business to spur job creation and growth. Small businesses employing not more than 50 employees are eligible.  Assistance focuses on:

• Access to capital (EXP Revolving Loan Fund)
• Incentive loan and grants to create jobs (EXP Job Creation Incentive & EXP Job Creation Matching Grant)

SMALL BUSINESS ASSISTANCE REVOLVING LOAN PROGRAM: Provides Connecticut’s small businesses with the financial resources they need to operate and grow in the State.  Connecticut-based businesses with less than 100 employees are eligible for loans and lines of credit of up to $500,000.