Information technology companies that locate into new or
rehabilitated buildings in our Information Technology Zone may
qualify for breaks in real and personal property taxes. We have a
comprehensive list of over 45 types of companies that can qualify
as an IT company. This includes IT manufacturers, service
businesses and others. If you depend on IT for a part of or all of
your company's business operation, call us. We also have a list of
all addresses in the zone—we will direct you to eligible
properties.
IT ZONE - REAL PROPERTY TAX BREAKS
If a property owner does at least $25,000 in real property
improvements to the space you will occupy (improvements must be
those requiring a building permit) and the value of the building
goes up because of the work, the increase in taxes caused by the
work receives a tax break. As a result, you may pay less in
occupancy costs—if your lease says you pay the owner's share of
real estate taxes. If your IT company buys a building, does the
work and then occupies it, the same tax breaks apply. If a new
building is constructed for your use, all of the increase in value
on the new building is considered for the tax break. The amount of
the break depends on how much the work costs. This is shown in the
chart below.
| Cost
of Improvements |
Percentage
Deferred of Increased Assessment |
Term |
| $3 million or more |
Year One - 100%
Year Two - 100%
Year Three - 80%
Year Four - 60%
Year Five - 40%
Year Six - 20% |
6 Years |
| $500,000 or
more |
Year One - 100%
Year Two - 75% |
2 Years |
| $25,000 or more |
Year One - 50%
Year Two - 50%
Year Three - 50% |
3 Years |
IT ZONE - PERSONAL PROPERTY TAX ABATEMENTS
If your IT business moves into a new building or an improved
building in the ITZone that qualifies for the tax breaks listed
above, your IT company can receive considerable tax breaks on
personal property that is IT related. The process is easy! Your IT
company provides a list of your IT-related equipment to our tax
assessor, who determines if each item is eligible. Eligible
equipment is abated for 3 years at
100% Abatement - First Year
100% Abatement - Second Year
100% Abatement - Third Year
Every year your company simply provides a list of any new
IT-related equipment you purchased that year to our assessor and
the 3-year abatement begins all over again on the eligible new
equipment.
For more information about the Meriden Information Technology
Zone, including a map of the included properties and application
forms, please contact Peggy Brennan at the Meriden Economic
Development office at 203-630-4151 or contact
via email.
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