Financial Incentives 

The Town of New Milford and the State of Connecticut offer many incentives to qualifying new or expanding qualifying businesses. To learn more about these incentives and additional incentives that may be available, contact NMED at 860-355-5001.

Local Incentives 

> Municipal Tax Abatement

NMED is authorized to grant local tax abatements for real estate as well as manufacturing machinery and equipment. The statutory authority for these abatements is in with the Connecticut General Statutes Sect. 12-65b. Projects can involve new construction, expansion or renovation.

> The Corporation Microloan Program

The Corporation for New Milford Economic Develop offers direct loans to for-profit businesses that are creating/retaining jobs and making an investment in the greater New Milford Area. Loan amounts from $5,000 to $15,000 are available to businesses of 50 or fewer employees and can be used for the purchase of machinery, equipment, inventory, supplies, furniture, fixtures, working capital and for other business-related expenses.

> Façade Improvement Grants & Loans

The Corporation for New Milford Economic Development offers direct loans and grants to New Milford businesses and commercial property owners located in the Village Center for façade improvements. Up to $5,000 in low cost funding can be used for new doors, repainting, repair of walls and windows, installation of cornices, awnings and other exterior improvements that will beautify the village.

State of Connecticut Business Incentives 

> Apprentice Training in Manufacturing, Plastics, or Construction Tax Credit

Corporations subject to the Corporation Business Tax may earn a credit for employing apprentices in the manufacturing, plastics, plastics-related, or construction trades. Credits earned by these corporations may be applied against the taxes imposed under Chapter 208 (Corporation Business Tax).

> Angel Investor Tax Credit Program

A tax credit for angel investors with a cash investment of $25,000 or more in a qualified Connecticut business. The credit shall be equal to 25% of the investor’s cash investment. Total tax credits allowed shall not exceed $250,000 for any angel investor. Qualified businesses must apply to Connecticut Innovations and be approved to be eligible for a tax credit.

> Economic and Manufacturing Assistance Act (First Five)

The First Five program augments and combines the State’s best incentive and tax credit programs to encourage job creation. In addition to the incentives based on the creation of the first 200 new full-time jobs within Connecticut, businesses would continue to receive credits for each net new job created above 200.

> Film Production & Digital Media Tax Credit

Qualified businesses can receive a tax credit equal to 30% of qualified digital media and motion picture production, pre-production and post-production expenses in the state that exceed $50,000.

> Financial Services Tax Credit

Financial institutions constructing new facilities and adding new employees can receive a credit of as much as 50% of the tax for up to 10 years; may be extended for an additional 5 years; based on the size of the facility and level of employment.

> Fixed Capital Tax Credit

Qualifying business can receive a 5% tax credit for fixed capital investment in tangible personal property; and a 5% tax credit for investments in human capital (employee training, childcare, facilities and subsidies and donation to higher education for the advancement of technology).

> Human Capital Investment Tax Credit

Qualifying businesses can receive a tax credit of 5% against Connecticut State Business Tax of the amount paid or incurred by the corporation for a human capital investment - job training, work education, donations or capital contributions to institutions of higher education in Connecticut, for example.

> Machinery & Equipment Tax Credit

Qualified businesses can receive up to 10% tax credit for increased investment in machinery and equipment for companies with 250 or fewer full-time permanent employees in Connecticut.

> Research & Development Tax Credits

A tax credit equal to 20% of the R&D expenditures in Connecticut in the current income year exceeding R&D expenditures of the prior taxable year; unused R&D credits can be carried forward and, for companies with gross income of $70 million or less, can be sold to the state for 65% of their value; credit equal to 100% of property taxes owed and paid on electronic data processing hardware peripheral equipment and software; credit may be applied against certain other Connecticut taxes. Specifically, a 5% tax credit for companies with 251 to 800 full-time permanent employees in Connecticut; from 1-6% of R&D expenditures based on the amount of such expenditures and size of the company.

> Urban and Industrial Site Reinvestment Tax Credit

Dollar-for-dollar corporate tax credit of up to 100% for an investment up to a maximum of $100 million in an urban area or an industrial project; minimum investment is $5 million in distressed communities and $50 million in all other communities.

State of Connecticut Tax Exemption Programs

> Corporate Business Tax

The following qualify for corporate business tax exemptions: (1) All insurance companies, Connecticut incorporated and non-Connecticut incorporated; (2) Corporate income, insurance premium and sales and use taxes for certain banks, insurers and investment companies locating in the Hartford Financial Service Export Zone that conduct all business with non-U.S. persons; (3) Capital gains from the sale of protected open space or Class I or II water company land to the state or certain entities; (4) Non-U.S. corporations of which their sole activities in Connecticut are trading stocks, securities or commodities of their own account.

> Real & Personal Property Tax

Up to 100% for 5 years on newly acquired and installed manufacturing machinery and equipment eligible for 5-7 year depreciation; the local property tax on manufacturing machinery and equipment in Connecticut will be phased out at a rate of 20% per year over the five-year period from 2007 to 2011; 100% for inventories; 30-100% from the increase assessment for personal property for manufacturers and 20-50% for eligible real property improvements can be offered by towns for 2-7 years, depending on the investment amount; 100% for unbundled software, machinery & equipment that will be exempt under 12-81 (72) once installed and used; 100% for 5 years on new commercial motor vehicles weighing over 26,000 jobs. That is used to transport freight for hire and all new commercial vehicles weighing over 55,000 lbs.

> Renewable Energy Sales & Use Tax

A sales and use tax exemption on machinery, equipment, tools, materials, supplies and fuel used directly in the renewable energy and clean energy technology industries. Renewable energy and clean energy technology industries mean industries that apply technologies to produce, improve, or develop solar energy electricity generating systems, passive or active solar water or space heating systems, geothermal resource systems and wind power electric generation systems, including equipment related to such systems.

> Sales & Use Tax

Sales and use tax relief on the purchase of tangible personal property for qualifying retention and expansion projects or projects that significantly contribute to a targeted industry cluster. The minimum investment in eligible property must equal $5 million and a total award must not exceed $10,000 per new job created and $2,000 for each retained position.

State of Connecticut Financial Programs

> Capital Access for Business (CAB)

CAB is for small and entrepreneurial Connecticut businesses that are requesting financing that a bank cannot approve without assistance from the program. Proceeds can be used for most business purposes, including working capital, machinery and equipment, and the purchase or upgrading of facilities. READ MORE

> Connecticut Innovations Equity Financing

Connecticut innovations may invest up to $1.5M per round, typically up to a maximum of $7m in any one company. READ MORE

> Connecticut Bioscience Innovation Fund

The intention of the bioscience Innovation fund is to speed commercializable bioscience breakthroughs to market. Startups and early-stage businesses may apply for secured convertible loans or equity. READ MORE

> Connecticut Innovations Pre-Seed Fund

The Pre-Seed Fund can provide up to $150,000 to help early-stage companies grow. More than just money, the fund includes mentoring, resources and introductions to powerful connections that can help turn ideas into commercially viable businesses. READ MORE

> Minority Business Revolving Loan Fund

Minority owned entrepreneurs and business owners can gain access to capital in order to start or grow their business. Qualifying business owners can apply for term loans and lines of credit ranging from $10,000 to $100,000 are available for maturity periods of up to 10 years. READ MORE

> Portfolio Company Lending Solution

Qualified companies can access up to $150,000 in low-interest loans to support growth and expansion initiatives. Loans offer long-term financing for business activities such as equipment acquisition, business development, product development or debt consolidation. READ MORE

> Small Business Express

The State of Connecticut offers three types of financial assistance to businesses of less than 100 employees located in Connecticut or planning to relocate to Connecticut – revolving loans from $10,000 to $100,000, job creation loans from $10,000 to $300,000 and matching grants from $10,000 to $100,000. These loans can be used for equity investment, capital purchases or working capital with priority given to job growth and retention. READ MORE

> Venture Debt

With amounts ranging from $150,000 to $2 million, CI’s Venture Debt Fund helps with debt financing that falls outside traditional lending guidelines. CI offers solutions for both early-stage and later-stage businesses, including venture or mezzanine debt funding for capital expenditures and working capital. READ MORE