Connecticut offers a wide range of incentives designed to foster innovation, economic development, and business growth.  From tax credits for job creation to support for manufacturing, the state provides a favorable environment for businesses across various sectors.  Below is an overview of some of the most valuable incentives in Connecticut, including eligibility criteria and potential value.

Connecticut Economic Development and Manufacturing Assistance Act (EDMMA)

Overview

The EDMMA provides financial assistance to businesses in Connecticut to encourage investment, job creation, and growth in the manufacturing sector.  The program includes various forms of financial support such as grants, loans, and tax credits.

Eligibility

• Businesses must demonstrate a commitment to investing in manufacturing or expanding their existing facilities in Connecticut.

• Must create a minimum number of new jobs or make substantial capital investments.

• Projects should provide long-term economic benefits to the region.

Incentive Value

• Financial assistance can include low-interest loans, loan guarantees, and grants.

• The value of the assistance varies depending on the project size, the number of jobs created, and the capital investment.

Application Process

Applications are submitted to the Connecticut Department of Economic and Community Development (DECD), which evaluates projects based on the economic impact and job creation potential.

Connecticut Research and Development (R&D) Tax Credit

Overview

The Connecticut R&D Tax Credit is designed to support businesses conducting research and development activities within the state.  It offers a credit against corporate income tax to incentivize innovation and technological advancements.

Eligibility

• Businesses must engage in qualified R&D activities, including product development, technological improvements, or process innovations.

• R&D must occur in Connecticut, and the research activities must contribute to scientific or technological advancements.

Incentive Value

• The credit is available for up to 20% of eligible R&D expenses, with a cap of $100,000 in credits for small businesses and a maximum of $500,000 for larger enterprises.

• The credit can be carried forward for up to 15 years.

Application Process

Businesses must submit their R&D tax credit claims to the Connecticut Department of Revenue Services (DRS), with detailed documentation of the R&D activities.

Connecticut Angel Investor Tax Credit

Overview

The Connecticut Angel Investor Tax Credit is designed to encourage investments in early-stage companies.  This program incentivizes investors who provide capital to qualified Connecticut-based startups.

Eligibility

• Investors must provide funding to early-stage companies that are involved in high-tech or other innovative industries.

• The company receiving the investment must be based in Connecticut, employ fewer than 100 people, and be engaged in certain growth sectors like technology or biotechnology.

Incentive Value

• Investors can receive a tax credit of up to 25% of their investment in a qualified business, with a maximum annual credit of $500,000.

• The credit helps offset the risk of investing in startups by reducing the investor's tax liability.

Application Process

Investors must apply through DECD, which provides approval and tracks investments.

Connecticut Urban and Industrial Sites Reinvestment Tax Credit Program

Overview

This program provides tax credits to businesses that invest in the redevelopment of urban and industrial properties in Connecticut.  It is designed to promote the revitalization of underutilized or abandoned properties, stimulating economic growth.

Eligibility

• Businesses must invest in the redevelopment of vacant or underused industrial or commercial properties located in urban areas.

• The redevelopment must result in job creation and economic development in the area.

Incentive Value

• Businesses can receive tax credits of up to 100% of eligible expenses incurred during the redevelopment process, including costs related to environmental cleanup, construction, and renovation.

Application Process

Businesses must submit an application to DECD, providing details of the project, its expected impact, and the costs involved.

Connecticut Film Tax Credit

Overview

The Connecticut Film Tax Credit is designed to attract film, television, and digital media productions to the state by offering significant tax incentives.  The program encourages investment in the local entertainment industry and generates job opportunities in the region.

Eligibility

• Productions must meet a minimum expenditure threshold in Connecticut, including costs related to equipment, salaries, and locations.

• Productions must create significant job opportunities and demonstrate an economic impact on the state.

Incentive Value

• Tax credits of up to 30% of eligible production expenses incurred in Connecticut.

• An additional 10% credit is available for productions that meet specific diversity, workforce development, or community outreach criteria.

Application Process

Producers must submit their film or media project to DECD for approval and provide a detailed budget and spending plan.

Connecticut Manufacturing Innovation Fund

Overview

The Manufacturing Innovation Fund is designed to help Connecticut manufacturers adopt new technologies and improve their production capabilities.  The program provides grants and loans to encourage innovation and enhance competitiveness.

Eligibility

• Manufacturers operating in Connecticut, particularly those investing in advanced technologies and innovation.

• Must demonstrate that the funding will contribute to increased productivity, job creation, or long-term growth.

Incentive Value

• Grants and low-interest loans are available to cover a wide range of costs, including technology adoption, equipment upgrades, and workforce training.

• The exact value depends on the project and its anticipated impact on the business.

Application Process

Businesses must apply through DECD, detailing the technology improvements and business expansion plans.

Connecticut Energy Efficiency Fund (EEF)

Overview

The Connecticut Energy Efficiency Fund provides financial incentives to businesses that make energy-efficient improvements to their operations, such as upgrading lighting systems or installing high-efficiency HVAC systems.

Eligibility

• Businesses of all sizes that implement energy-saving measures in their facilities.

• Projects must lead to significant reductions in energy consumption.

Incentive Value

• Rebates and grants of up to 50% of the cost of energy efficiency improvements, depending on the scope of the project.

• Additional incentives may be available for renewable energy installations.

Application Process

Businesses must apply through the Connecticut Green Bank or their local utility provider to receive funding or rebates for qualifying energy-saving projects.

Connecticut Brownfield Remediation and Revitalization Program

Overview

This program offers financial assistance to businesses that clean up and redevelop contaminated brownfield sites in Connecticut. It aims to revitalize neglected properties and turn them into productive assets.

Eligibility

• Businesses must be involved in cleaning up and redeveloping brownfield sites located in Connecticut.

• The property must be deemed a brownfield site by DECD.

Incentive Value

• Financial assistance in the form of grants, loans, and tax credits to cover environmental cleanup costs.

• The amount of assistance varies depending on the size of the project and the level of contamination.

Application Process

Businesses must submit an application to DECD, detailing the environmental conditions of the site and the costs of remediation.

Conclusion

Connecticut offers a wide array of incentives aimed at supporting business growth, innovation, and revitalization.  These programs provide valuable financial assistance for businesses in diverse sectors, from manufacturing and technology to film production and energy efficiency.  Businesses seeking to invest or expand in Connecticut should explore these opportunities to take advantage of the state's supportive economic environment.