Municipal Tax Abatements


Each Connecticut municipality can offer local tax abatements for both real estate and manufacturing machinery and equipment. They’re based on a sliding scale, depending on your level of investment. 

If you’re acquiring or leasing real property (or air space) in a Connecticut city or town, the local municipality can choose to freeze the assessment of the property and any improvements you may make for a specified period:

  • seven years max, if you invest at least $3 million on those improvements;
  • two years max, if invest at least $500,000 on those improvements;
  • three years max, if you invest at least $10,000 and the value is not greater than 50% of the increased assessment; or
  • as defined by ordinance for a designated retail business.

Improvements include the rehabilitation of existing structures, so long as they are used for at least one of the following purposes:

  1. office space;
  2. retail space;
  3. permanent residential use;
  4. rental residential use;
  5. manufacturing;
  6. warehouse, storage or distribution;
  7. structured multilevel parking related to a mass transit system;
  8. information technology;
  9. recreation facilities;
  10. transportation facilities;
  11. mixed-use development.