Incentive Guidelines & Zones
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),
- State conveyance tax exemption for all real estate transactions in the zone (CGS § 12-498)
Click here for the Enterprize Zone map.
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.
Click here for the Railroad Depot Zone map.
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 |
Other property not related to manufacturing | Diminishing tax exemption on value of real property improvements | Seven Years 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.