ECONOMIC DEVELOPMENT Zoned For The Future West Haven enters Enterprise Zone program
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here’s a popular phrase that says “don’t leave any money on the table.” For municipalities, this often comes in the form of money that can be had from the federal and state government through tax breaks. Recently, West Haven has established an Enterprise Zone that aims to entice businesses and real estate to town. Connecticut was ahead of the curve on enterprise zones, and was the first state in the country to establish a statewide Enterprise Zone in 1982, according to the state’s website, and businesses can receive tax incentives for developing properties in distressed areas. The site says that there are currently 43 participating communities. The town or city property must meet certain criteria in order to be considered for the Enterprise Zone program, it needs to be “a contiguous tract of land with high poverty and unemployment rates, along with a significant percentage of the population on public assistance within the boundary,” per the city of West Haven. Only one tract in West Haven met those criteria, but that doesn’t mean that the city cannot benefit from even just this one area seeing increased economic development. Mayor Nancy Rossi said in a press release from the city that businesses are already interested in the area as the initiative moves forward, generating “much-needed revenue and jobs.” There are two key incentives according to the state: a five-year, 80% abatement of local property taxes on qualifying real estate and personal property; or a 10-year 25% credit on the portion of the corporate business tax that is directly attributable to a business expansion or renovation project, as determined by the Connecticut Department of Revenue Services. Under the header eligibility for businesses, they list one of three criteria that businesses must meet in order to receive the incentive: renovate an existing facility by investing at least 50% of the facility’s prior assessed value in the renovation; construct a new facility or expand an existing one; or acquire a facility that has been idle for a set amount of time based on employee numbers. With development in many areas coming to a complete stand-still throughout 2020, tax incentives have shown to be one of the ways to draw interest from businesses. An Enterprise Zone is one of those programs that tries to match areas that need that development the most with businesses that are looking to get a jump start or simply grow. West Haven getting in on the program is a smart way to not leave any money on the table without betting the pot on the city’s future.
10 | INNOVATIVE IDEAS | 2021
State Rep. Michael DiMassa and Mayor Nancy Rossi work on the city’s enterprise zone effort.
