CT Incentives | Finance, Loans, IRB, Workforce Development

A comprehensive list of Connecticut financial aid, loans, grants, abatements, workforce development, exemptions, funds & capital investment opportunities.


https://businessfacilities.com/2015/01/ct-incentives-and-workforce-development-guide/
A comprehensive list of Connecticut financial aid, loans, grants, abatements, workforce development, exemptions, funds & capital investment opportunities.
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Connecticut Incentives and Workforce Development Guide

CT Incentives | Finance, Loans, IRB, Workforce Development

For a list of Connecticut economic development agencies that can help with the site selection process, visit our Online Site Seekers’ Guide.

 

FINANCING & GRANTS

Economic and Manufacturing Assistance Act (MAA): Incentive-driven direct loans for projects when there is a strong economic development potential. Eligible uses include:

  • Planning, including but not limited to: feasibility studies, engineering, appraisals, market studies and related activities
  • Acquisition of real property, machinery or equipment or any combination, provided such assistance does not exceed the fair market value
  • Construction of site and infrastructure improvements relating to a municipal or business development project
  • Construction/renovation/demolition of buildings
  • Relocation expenses for the purpose of assisting manufacturing or other economic-based businesses to locate, construct, renovate or acquire a facility
  • Working capital in conjunction with a business development project
  • Business support services such as labor training, day care, energy conservation, pollution control, recycling and the like, in conjunction with other state agencies

First Five Plus Program: Governor Malloy’s First Five Plus jobs initiative allows for substantial financial assistance for large-scale business projects to encourage business expansion, relocation and job creation. The assistance under this program may include up to 100% funding under the Economic and Manufacturing Assistance Act (MAA) and additional business tax credits.

  • An eligible business development project under the program must commit to (1) create not less than 200 jobs within 24 months from the date the application is approved or (2) invest not less than $25 million and create not less than 200 new jobs not later than five years after the date an application is approved.
  • The Commissioner of the Department of Economic and Community Development (DECD) may give preference to a business development project that is a redevelopment project if the Commissioner believes the project will create jobs sooner than either 24 months from the date of application if the company creates not less than 200 jobs or within five years from the date of application if the investment is not less than $25 million.
  • The DECD Commissioner may waive existing statutory caps on the amount of tax credits insurers may claim against the insurance premium tax.
  • The written consent of the Governor is required for financial assistance awarded through the program. Prior to the Governor’s approval, the DECD Commissioner must certify that the business development project applicant has satisfied all criteria in the program.
  • In order to expedite the approval process, eligible First Five Plus projects are exempt from current laws requiring legislative approval for financial assistance or tax credits above the present statutorily specified amounts required for approval.

Small Business Express Program (EXP): Provides loans and grants to Connecticut’s small businesses to spur job creation and growth

 

TAX INCENTIVES

Angel Investor Tax Credit Program: Angels are people who invest in startups in exchange for equity. Vital to the entrepreneurial scene, angels provide entrepreneurs with seed capital, which is notoriously difficult to raise. They’re also often entrepreneurs themselves, or industry experts with a personal interest in helping the company succeed. Certain Connecticut businesses may qualify to participate in the Angel Investor Tax Credit Program if their principal place of business is in Connecticut and they are engaged in bioscience, advanced materials, photonics, clean tech or IT. They must also have:

  • Gross revenues under $1 million in the most recent income year
  • Fewer than 25 employees, including shareholders, members or active partners, 75% of whom are Connecticut residents
  • Operated in Connecticut for less than seven consecutive years
  • Received less than $2 million in eligible investments from angel investors

Connecticut Innovation’s (CI) Pre-Seed Fund: CI’s Pre-Seed Fund supports the formation of new Connecticut technology companies by providing the funding, mentoring and resources needed to turn ideas into an early-stage technology company. In addition to providing equity, CI’s experienced, entrepreneur-friendly team works with each pre-seed company to offer advice, support and introductions to powerful connections that help develop a commercially viable business. This holistic thinking has led CI to become one of the most active early-stage investors in the country. Funding amount is up to $150,000 for pre-seed expenses; at least a 50% match is required from private sources.

Digital Animation Tax Credit (Conn. Gen. Stat. §12-217ll): A tax credit available to state-certified digital animation production companies that engage in digital animation production activities on an on-going basis. This tax credit is administered by the Connecticut Department of Economic and Community Development (DECD). This tax credit may be applied to the taxes imposed under Chapter 207 and Chapter 208 of the Connecticut General Statutes. Any digital animation production company receiving a digital animation tax credit shall not be eligible for or receive the film production tax credit. The tax credit is equal to:

  • 10% for production expenses or costs of $100,000 to $500,000;
  • 15% for production expenses or costs of more than $500,000 to $1 million; and
  • 30% for production expenses or costs of $1 million or more

Urban and Industrial Sites Reinvestment Tax Credit Program: Created under Public Act 00-170 and later modified by Public Acts: 05-276; 06-184;06-187 and 06-189. This program is a powerful economic development tool designed to drive investment to the state’s urban centers and other economically distressed communities without depleting valuable state bond dollars. Under the program, the state may provide up to $100 million in tax credits over a 10-year period to support projects that create significant jobs and capital investment in these under-served areas. Total expenditures for the program are capped at $500 million. The amount of credits offered is based on the department’s extensive due diligence process, which includes a comprehensive financial review and an impact analysis econometric models. The commissioner must submit any requests for credits over $20 million to the legislature for their review.

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