Loans, loan guarantees, risk capital, labor training, tax abatements, exemptions and credits, and other incentives including financing and assistance for brownfield remediation are available through the Department of Economic and Community Development (DECD), the Connecticut Development Authority (CDA), and Connecticut Innovations. The department assists businesses through several initiatives.
The DECD and CDA offer a wide array of financing programs for the following activities:
• Planning, including but not limited to: feasibility studies, engineering, appraisals and market studies;
• Acquisition of real property, machinery, or equipment, or any combination;
• Construction of site and infrastructure improvements related to a municipal or business development project;
• Relocation expenses for the purpose of assisting manufacturing or other economic-based businesses to locate, construct, renovate, or acquire a facility;
• Working capital in conjunction with a business development project; and
• Business support services such as labor training, day care, energy conservation, pollution control and recycling.
Risk capital/technology assistance:
Connecticut Innovations, the state's emerging-technology investor, operates programs including:
• Product development financing in the form of risk capital for high-technology startups, products, and services; investments are available for high-tech companies in the state seeking between $100,000 and $1 million;
• Advice and information to Connecticut companies and to companies seeking to relocate in Connecticut;
• Connecticut Technology Partnership, which provides funds of between $50,000 and $500,000 to companies seeking matching funding to work in federal research and development programs in high-tech disciplines;
• Yankee Ingenuity Initiative, collaborative research funding that pairs up and funds
university researchers and private companies working on the same technology; funding of between $25,000 and $100,000 is available to Connecticut universities, matched at least one-to-one by the participating company.
• Pre-seed financing program for early-stage Connecticut technology ventures. Financing will be made available for development of proof of concepts, support services and other specified assistance. Technology businesses must: be principally located in Connecticut; have not less than 75 percent of their employees working in Connecticut; and demonstrate private investment dollars of not less than 50 cents for every dollar of financial assistance sought from the program.
• Angel Investor Tax Credit Program that allows Angel Investors to take a credit against Connecticut State income tax for certain investments made in qualifying businesses. Investments must be at least $100,000 in order to be considered under the Program and the income tax credit equals 25 percent of the cash investment, up to a maximum credit of
Other financing programs:
The state's Urban Reinvestment Tax Credit Program provides up to $100 million in tax credits to companies over a 10-year period for projects that create significant jobs and capital investment in urban centers and economically distressed communities.
The Department of Economic and Community Development also assists businesses through enterprise zones incentives.
The Connecticut Office of Brownfield Remediation and Development at DECD as a one-stop resource for state programs and services and a host of flexible tools - such as gap financing, seed capital programs, corporate tax credits, and an environmental liability insurance program - to successfully redevelop brownfields. Brownfields are buildings or sites that have been contaminated over the years and now need to be properly evaluated and cleaned before they can be put back into reuse. The Connecticut Brownfields Redevelopment Authority offers grants to reimburse developers and municipalities for Phase I and Phase II site assessments and investigations. Also, through the Special Contaminated Properties Remediation and Insurance Funds (SCPRIF), municipalities and businesses can receive low-interest loans to assess, demolish, and remediate contaminated brownfields.
The Office of the Permit Ombudsman was recently established at the Department of Economic and Community Development to expeditiously review applications for state licenses and permits. The office will coordinate and expedite permits and approvals with the departments of Environmental Protection, Transportation and Public Health for projects that create at least 50 permanent, full-time equivalent jobs in any of the state's 17 enterprise zones or at least 100 such jobs in non-enterprise zone communities; redevelop a brownfield site; are compatible with the state's responsible growth initiatives; develop a mix of different but compatible uses near transportation facilities and infrastructure (i.e., transit-oriented development); or develop green technology businesses. The commissioner may provide expedited reviews for other types of projects based on their "economic impact factors."
In addition to the above-mentioned programs and services, the DECD can also assist companies in working with other state agencies, including the Department of Revenue Services, the Department of Environmental Protection, and the Department of Transportation.
Connecticut State Contact:
Connecticut Department of Economic and Community Development
505 Hudson Street
Hartford, CT 06106
Incentive and tax information is provided to Area Development by each state's economic development or commerce agency for information purposes only and is subject to revision at any time by the state government. Please contact the state agency directly for full requirements and offerings.