Enterprise Zone – This centrally located zone includes the Pratt & Whitney World Headquarters and surrounding areas including parts of Main Street and Silver Lane. Benefits are generally available to businesses that start up in the zone, relocate there or improve property within it. The benefits, detailed in OLR 2011-R0307, include:
- Five-year, 80% property tax exemption on new taxable value for improving or acquiring “manufacturing facilities” and acquiring machinery and equipment,
- for commercial and residential real property improvements that do not qualify for the above exemption (other than improvements to manufacturing facilities), a seven-year property tax exemption (100% in first two years, 50% in third, and a decrease in 10% in each of the remaining four years), (CGS § 32-71),
- 10-year, 25% corporate business tax credit attributed to facility improvements. The credit increases to 50% for certain businesses that meet resident employment criteria (CGS § 12-217e),
- 10-year corporate business tax credit (100% for first three years, 50% for next seven years) for starting a new business in an enterprise zone (business must employ a certain number of residents to qualify) (CGS § 12- 217v).
- State conveyance tax exemption for all real estate transactions in the zone (CGS § 12-498)
Railroad Depot Zone – This zone offers benefits for properties along railroad rights of way in our community. It includes industrial cooridors along Tolland Street and Park Avenue as well as the Prestige Park and North Meadows areas. It offers all the benefits of the Enterprise Zone except for the state conveyance tax exemption.
Enterprise Zone & Railroad Depot Zones Tax Incentives
Manufacturing & Related Industries
80% abatement of local real & personal property taxes (state reimburses town up to half of this amount)
Five (5) years
25% credit on state corporate taxes
Ten (10) years
Other property not related to manufacturing
Diminishing tax exemption on value of real property improvements
Years 1-2: 100%
Year 3: 50%
Year 4: 40%
Year 5: 30%
Year 6: 20%
Year 7: 10%
Enterprise Zone Only Tax Incentives
Any property sold within the zone
Exemption of state conveyance tax
At time of conveyance
Incentives to Promote Grand List Growth – For properties that are not located in the Enterprise Zone or Railroad Depot Zone, the Town Council may consider an abatement of local property taxes that result from an investment that increases the assessed value of the property. This requires a resolution by the Town Council under their authority from Connecticut General Statutes Sec. 12-65b. General, non-binding guidelines that the Town Council will consider for these abatements are as follows:
|Percent increase in assessment value||Max. length of agreement||Max. percent that increase in assessment may be abated|
|25%||3 years||50% of the increase in assessment based on completed work|
|50%||2 years||100% of the increase in assessment based on completed work|
|75%||5 years||100% of the increase in assessment based on completed work|
|100% or more||10 years||100% of the increase in assessment based on completed work|
For the full incentive guidelines, including an example application and resolution format, click here. For more information, please contact the Development Department at (860) 291-7300.
Opportunity Zones – East Hartford has five Opportunity Zones, which allow investors to delay including capital gains as taxable income by reinvesting the value in opportunity funds, which invest in properties and businesses in these designated areas. Click here to learn more.
For more information on East Hartford's Incentive Zones, please call the Development Department at (860) 291-7300.