Meriden's Information Technology Zone
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. You may contact the Office of Economic Development to confirm if your project qualifies or fill out the application form below.
If a property owner does at least $25,000 in real property improvements to the space you will occupy (improvements must bethose 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.
|Costof Improvements||PercentageDeferred 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%
|$500,000 ormore||Year One - 100%
Year Two - 75%
|$25,000 or more||Year One - 50%
Year Two - 50%
Year Three - 50%
IT Zone - Personal Property Tax Abatements
If your IT business moves into a new building or an improved building in the IT Zone 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.