50% Manufacturing Facility Credit for Facilities Located in an Enterprise Zone (or Other Area Having Enterprise Zone Level Benefits)
A credit equal to 50% of the Connecticut corporation business tax allocable to a manufacturing facility located within a designated Enterprise Zone (or other area designated as having Enterprise Zone level benefits) is available to a manufacturing facility that meets certain employment criteria. If it does not meet the employment criteria, the facility may still qualify for the 25% Manufacturing Facility Credit. (See Page 69.)
The 50% and 25% Manufacturing Facility Credits are certified by the Department of Economic and Community Development (DECD). To qualify for either credit, taxpayers must contact DECD at 860-270-8143, for application procedures.
A manufacturing facility is defined as any plant, building, or other real property improvement that is constructed, renovated, expanded, or acquired and that is used for one of the following purposes:
Manufacturing, processing, or assembling of raw materials, parts or manufactured products;
Research and development facilities directly related to manufacturing;
The significant servicing, overhauling or rebuilding of machinery and equipment for industrial use;
The warehousing and distribution in bulk of manufactured products on other than a retail basis (new construction only); or
Certain service sectors as defined by the Commissioner of DECD in Conn. Agencies Regs. §32-9p-5.
For a complete definition of a manufacturing facility, see Conn. Gen. Stat. §32-9p(d).
To qualify for the 50% credit, the corporation must, during the last quarter of its income year, either:
Employ 150 or more full-time employees who at the time of employment were:
Residents of the Enterprise Zone (or other area having Enterprise Zone level benefits; or
Residents of the municipality who are eligible for training under the federal Workforce Investment Act (WIA); OR
Have 30% or more of its full-time employment positions directly attributable to the manufacturing facility held by employees who at the time of employment were:
Residents of the Enterprise Zone (or other area having Enterprise Zone level benefits); or
Residents of the municipality who are eligible for training under the federal WIA.
An Enterprise Zone is any area designated by the Commissioner of DECD as an Enterprise Zone.
Areas that are currently designated as Enterprise Zones are situated within the following municipalities:
Informational Publication 2006(15), Guide to Connecticut Business Tax Credits Issued: 04/24/07