Business Exemptions
(I) PERSONAL PROPERTY
Manufacturing Machinery
A five-year, 100% property tax exemption is available for eligible manufacturing machinery and equipment. In broad terms, this exemption is available for machinery and equipment used in what is thought of as traditional manufacturing, as well as for machinery and equipment used in the biotechnology industry or in research and development. In addition, it is available for machinery and equipment used in the production of motion pictures, video and sound recordings. The machinery and equipment must be tangible personal property that is depreciable, for Internal Revenue purposes, over either five or seven years, and be predominantly used for a manufacturing purpose.
Annual application to the Assessor is November 1st. Application must be filed by the property owner on a ("Manufacturing Machinery and Equipment Claim" Form M-65).
Distressed Municipality (Personal)
A five-year, 80% property tax exemption for machinery and equipment located in a facility for which: (1) an Eligibility Certificate has been issued; and (2) the machinery and equipment is certified by the Department of Economic and Community Development (DECD). Contact the DECD for questions at (860 270-8140).
The types of personal property that the DECD can certify as eligible for the distressed municipality exemption may be more expansive than property that is eligible for the aforementioned Manufacturing and Machinery exemption program. The criteria for the Manufacturing and Machinery exemption program are more restrictive.
Annual renewal certificate (M-55) must be filed with the Assessor by November 1st.
Water Pollution Control Equipment
Property acquired after July 1, 1965 for the treatment of industrial waste is eligible for exemption if certified by the Department of Environmental Protection (DEP). The exemption remains in effect as long as the equipment remains on site and is not altered in any manner.
Owner required to file DEP certification with the Assessor by November 1st.
Air Pollution Control Equipment
Property acquired after July 1, 1967 for the reduction, elimination or control of pollution, is eligible for exemption if certified by the Department of Environmental Protection (DEP). The exemption remains in effect as long as the equipment remains on site and is not altered in any manner.
Owner required to file DEP certification with the Assessor by November 1st.
Commercial Fishing Apparatus
Commercial fishing apparatus may be exempt if the value exceeds $500.
(II) MOTOR VEHICLES
Motor Busses
Motor Busses used exclusively by a common carrier transportation business are exempt from property taxation. All other property of such companies, including real estate and garages, is taxable.
Commercial Vehicles
A 100% exemption is available for certain commercial vehicles. This exemption may be granted up to five years. Eligibility is dependent on the following:
(I) The commercial vehicle must be new; that its equitable or legal title has never been transferred by a manufacturer, distributor or dealer to anyone other than the owner who files an exemption application, or the owner on whose behalf the application is filed.
(II) The vehicle cannot have been registered in any state or jurisdiction prior to August 1, 1996. However, the vehicle must be registered in Connecticut on or after that date.
(III) The vehicle’s Gross Vehicle Weight Rating must be in excess of 26,000 pounds.
(IV) The vehicle must be used exclusively for the interstate or intrastate transportation of freight for hire.
(V) A "For Hire Motor Carrier" must use the vehicle. This means an individual or legal entity that is compensated for transporting freight belonging to an unrelated party.
(III) REAL ESTATE
Assessment Deferral Program
A five-year exemption available for new construction, expansion, or rehabilitated property. In order to qualify, the proposed building assessment must increase by at least 34%. The exemption schedule is as follows:
| Year 1 |
No increase in assessment |
| Year 2 |
Increase phased-in at 20% |
| Year 3 |
Increase phased-in at 40% |
| Year 4 |
Increase phased-in at 60% |
| Year 5 |
Increase phased-in at 80% |
Interested owners can contact either the Office of Business Development (203) 946-7060 or The Livable City Initiative (203) 946-7090 to inquire about application procedures.
Enterprise Zone Deferral
A seven-year exemption available for new construction, expansion, or rehabilitated property located in New Haven’s Designated Enterprise zone. The eligible zone is bordered north by Hamden, east by Mansfield Street and Winchester and Prospect Avenues, on the south by Whalley Avenue and Lake Place, and on the west by Crescent and Fournier Streets. The exemption schedule is as follows:
| Year 1 |
No increase in assessment |
| Year 2 |
No increase in assessment |
| Year 3 |
Increase phased-in at 50% |
| Year 4 |
Increase phased-in at 60% |
| Year 5 |
Increase phased-in at 70% |
| Year 6 |
Increase phased-in at 80% |
| Year 7 |
Increase phased-in at 90% |
Interested owners can contact either the Office of Business Development (203) 946-7060 or The Livable City Initiative (203) 946-7090 to inquire about application procedures.
Distressed Municipality (Real)
A five-year, 80% property assessment exemption available for a manufacturing facility for which: an Eligibility Certificate (UT 4) has been issued. Contact the DECD for questions regarding eligibility (860) 270-8140. Annual renewal certificate (M-55) must be filed with the Assessor by November 1st.
Child Day Care Services
Available to business enterprises, which make child day care services available to municipal residents. To qualify for this exemption, the business cannot be solely engaged in the construction or operation of child day care facilities. The day care services provided must be incidental to the company’s primary business function.
Eligible businesses should contact the Assessor prior to October 1st.
