CT HB05585

Commissioner of Economic and Community Development shall develop benchmarks for job creation and state/municipal revenue generation to assess enterprise zone business eligibility and submit report to relevant committees by January 1, 2019.

Effective July 1, 2019, businesses constructing, substantially renovating, or expanding manufacturing or service facilities in enterprise zones must notify the commissioner upon filing applicable permits, allowing negotiation of property tax exemption rates and duration between the business, commissioner, and municipal chief elected official.

Businesses with manufacturing or service facilities completed before July 1, 2019, must submit notice of intent prior to that date to avoid the new negotiation requirements; those submitting notice after July 1, 2019, are subject to negotiated exemption terms.

Property tax exemption rates for manufacturing facilities remain at 80 percent of valuation for five assessment years; service facilities receive exemptions ranging from 40 to 80 percent based on investment amount, with certain conditions allowing five-year extensions.

Machinery and equipment installed in enterprise zone facilities on or after July 1, 2019, are eligible for exemptions at negotiated rates determined under the new process, with exemptions terminating if the facility no longer qualifies for exemption.