Development Incentives

Tax Increment Financing

TIF Districts leverage the increased tax assessment that is realized over a baseline assessment value. The tax revenue generated is placed into its own account and can be reinvested into the District for public infrastructure improvements (i.e. utilities, streets, walks, recreation, etc.), used to assist with private development, or moved into the general fund for other purposes. The City adopted a TIF district along the Thames/Bridge Street corridor from I-95 to Eastern Point Road, extending through the Five Corners area to Clearance B Sharp highway. Please refer to the map below. For more information, please contact Planning & Economic Development Department.

CityMap

Economic Assistance Fund

Provides financial support for public infrastructure associated with new development projects. Examples include utility line extensions, sidewalk/road improvements, traffic control and street lighting. For more information please contact Planning & Economic Development Department.
Economic Assistance Fund (PDF)

Enterprise Zone

Companies involved in manufacturing, research associated with manufacturing, and distribution warehousing (new construction/expansion only) as well as certain service companies that develop properties in an Enterprise Zone or a zone eligible for Enterprise Zone-level benefits will receive:

  • A five-year, 80% abatement of local property taxes on qualifying real estate and personal property (Note: the company must be new to the municipality's grand list as a direct result of a business expansion or renovation);
  • A 10-year, 25% credit on the portion of the corporate business tax that is directly attributable to a business expansion or renovation project, as determined by the Connecticut Department of Revenue Services. The credit may increase to 50% based on the number of new jobs created; and
  • Newly formed corporations located in a zone qualify for a 100% corporate tax credit for their first three taxable years and a 50% tax credit for the next seven taxable years.

Eligibility: These programs are designed to encourage capital improvements to land and/or buildings. Businesses must be prepared to:

  • Renovate an existing facility by investing at least 50% of the facility's prior assessed value in the renovation; or
  • Construct a new facility; or
  • Expand an existing facility; or
  • Acquire a facility that has been idle for a stated minimum time.