June 24, 2010
Contact: Donna Tommelleo, 860-524-7313, email@example.com
Governor M. Jodi Rell today announced she has signed into law a bill that creates an economic development zone in four Connecticut towns near Bradley International Airport – East Granby, Suffield, Windsor and Windsor Locks.
The Bradley Airport Development Zone (BADZ) establishes tax incentives for manufacturers and certain related businesses that build or substantially renovate facilities in the area and create new jobs.
“Bradley International Airport is a major driver of Connecticut’s economy and – especially as we strive to keep and create jobs during this recovery period – we need to make the most of our resources,” Governor Rell said. “These incentives will encourage manufacturers and other businesses that depend on air cargo services for their supplies and for shipping their final product to locate in and around Bradley. They can move products more quickly, serve their customers more efficiently – all factors for long-term success.
“These credits are limited to specific businesses and business types,” the Governor noted. “They apply to companies that will create good-paying, dependable jobs for Connecticut residents and enhance the economic growth that Bradley brings to the region. Smart, targeted investments like this will help get our economy rolling again and position us for greater growth in the future.”
The credits are available to businesses that manufacture, process or assemble raw materials or parts; perform manufacturing-related research and development; or significantly service, overhaul or rebuild industrial machinery and equipment. Warehousing and motor freight businesses can qualify for the credits if they can demonstrate their business is dependent on goods shipped by air, while service companies – including information technology companies – can also qualify for credits if they can demonstrate their business is related to the airport.
Businesses seeking the credits must show that the prospect of obtaining the incentives influenced their decision to locate in the BADZ. They must also demonstrate economic need and a benefit to the state.
The available credits are a 5-year, 80 percent property tax exemption for new, renovated or expanded facilities and on machinery or equipment installed as part of a development or acquisition, and a 10-year corporation business tax credit on the amount of the tax attributable to the BADZ facility. The business tax credit can range from 25 percent to 50 percent, depending on how many employees at the BADZ facility are residents of the town or zone who qualify for federal job training assistance.
The legislation – substitute Senate Bill 107, An Act Establishing a Bradley Development Zone – takes effect October 1, 2011. The property tax exemptions apply to assessment years beginning on or after October 1, 2012, and the business tax exemptions apply to income years beginning on or after January 1, 2013.