Reimbursement of Tax Loss on Exemptions
 

Program Description

The Manufacturing Machinery and Equipment Exemption Program provides for 100 % exemption of local property taxes on qualified, newly acquired manufacturing machinery and equipment. The State of Connecticut reimburses municipalities for the exemptions granted under the provisions of the program. Qualified manufacturing and biotechnology companies may receive a tax exemption on their local property taxes for a period of five years. To qualify for exemption, machinery and equipment must be five or seven-year property as defined by the Internal Revenue Service, acquired within prescribed time periods, and used predominantly for manufacturing and research and development purposes. Biotechnology and the production of motion pictures, video and sound recordings and recycling as defined in Connecticut General Statutes 22a-260, as well as more traditional manufacturing activities, are included in the program. Applicants may apply for the exemption at the local Assessor's Office by November 1 of each year.

The Application and Grant Guidelines  are available.

For Further Information, Please Contact:
Shirley Corona: phone (860) 418-6221 - fax (860) 418-6493 - e-mail shirley.corona@ct.gov

Program Objective Statement

To provide state reimbursement to towns in an amount equal to 80% of the revenue loss sustained as a result of property tax exemptions applied to eligible manufacturing machinery and equipment as defined in Connecticut General Statutes: Section 12-81(72).

Eligibility

All 169 towns and lesser taxing districts.

Grant Activity

Fiscal Year 2008 - Paid Out: $41,996,523 - Recipients: 209 towns and lesser taxing districts containing 4,029 individual participants.

Key Dates

By February 15 - Distribute Exemption Report forms to towns.

By March 15 - Receive completed Exemption Claim forms back from towns from preceding year's October 1 Grand List in substantiation of Exemption Report.

By August 31 - Distribute new Exemption Claim forms to towns for this year's October 1 Grand List.

By December 15 - Prepare and certify Payment List for Comptroller.

By December 1 - Notify towns of adjustments to exemptions granted due to post payment Claim reviews. (This is in the following year, 20+ months after the March 15 filing deadline for Exemption Reports.)

Statutory References

Connecticut General Statutes (CGS): Sections 12-81(72), 12-81k, 12-94b and 12-94c.

Regulatory References

Not applicable.

Funding Source(s)

State: General Fund (100%).

Account Number

11000 - 17031 - 72003 - 55050.

Catalogue of Federal Domestic Assistance (CFDA) Number

Not applicable.

General Statement of Process

Mails Exemption Report  forms to towns. Receives completed Exemption Report forms and completed  Exemption Claim forms from towns. Mails new Exemption Claim forms to towns for use in the following year. Reviews Claims for accuracy and completeness. Modifies, approves or denies Claims and reconciles modifications with towns. Prepares and certifies Payment List for Comptroller.