Enterprise Corridor Zone

The Town of Beacon Falls participates in the Naugatuck Valley Enterprise Corridor Zone Program that is run through the Connecticut Department of Economic and Community Development. The program offers tax incentives to firms in the industries listed below:
 
  • Manufacturing
  • Warehousing and distribution
  • Certain service firms (contact Economic Development Coordinator for a complete list)
Projects eligible for the Enterprise Zone benefits must meet the following criteria:
 
  • Substantial renovation of an existing facility involving capital expenditures of at least 50% of the assessed value of the facility prior to its renovation. All renovation activities must be permitted by the Town in order for their value to be recognized. The only costs that matter in meeting the 50% test are those costs that were incurred for work that required the use of a building permit.
  • Construction of a new facility. The expanded portion of an existing facility is considered new construction.
  • Acquisition of a facility by new owners after having been idle for at least one year prior to acquisition. Within the Enterprise Corridor Zone, the idleness requirement does not apply to companies with an average of five or fewer employees in the six months preceding     acquisition of the facility, and is at least six months for businesses that have an average of between six and nineteen employees in the preceding six months. A one year idleness is required if there are more than nineteen employees involved.
The benefits associated with the program are as follows:
 
  • A five-year, 80% abatement of local property taxes on qualifying real and person property, subject to the property being new to the grand list of the municipality as a direct result of a business expansion or renovation project, or in the case of an existing building, having met the vacancy requirement. The property tax abatement is for a full five-year period and takes effect with the start of the first full assessment year following the issuance of a Certificate of Eligibility from the Department of Economic and Community Development.
  • A ten-year, 25% credit on that portion of the state’s corporation business tax that is directly attributable to a business expansion or renovation project as determined by the Connecticut Department of Revenue Services. The corporation tax credit is available for a full ten-year period and takes effect with the start of the business’ first full fiscal year following the issuance of a Certification of Eligibility from the Department of Economic and Community Development. The corporate tax credit increases to 50% if a minimum of 30% of the new full-time positions are filled by either zone residents or are residents of the municipality and are WIA eligible.
Recipients of the benefits of the program are not eligible to receive additional tax incentives from the Town of Beacon Falls. The granting of Enterprise Zone benefits is at the discretion of the State of Connecticut, and the Town of Beacon Falls has no regulatory authority over the process.
 
Economic Development Coordinator
(203) 217-4358