Bradley Airport Development Zone
The Bradley Airport Development Zone extends enterprise zone tax incentives to manufacturers and other specified businesses that develop or acquire property in the zone and create jobs.
A business qualifies for BADZ's the tax incentives if it acquires an idle facility or constructs, substantially renovates, or expands one and uses the facility for specified uses. Eligible uses include:
- Performing research and development directly related to manufacturing;
- Significantly servicing, overhauling, or rebuilding machinery and equipment for industrial uses.
Warehousing and motor freight distribution uses qualify for the incentives, but only if they handle goods shipped by air. Business services, including information technology, also qualify for incentives if the Department of Economic and Community Development (DECD) commissioner determines they depend upon or relate directly to the airport.
Newly constructed, renovated, or expanded facilities qualify for an exemption based on the value of the improvement. The exemption equals 80% of improvement's assessed value and it is good for five years. Acquired facilities qualify for the same exemption, but it is based on the assessed value of the acquired section. This exemption is also good for five years. Businesses developing or acquiring a facility in the BADZ also qualify for a five-year, 80% exemption on assessed value of machinery and equipment it installs in the facility as part of its development or acquisition.
Corporation Business Tax Credits
Businesses that qualify for the property tax exemptions also qualify for a 10-year corporation business tax credit equal to the portion of the tax attributable to the facility. (The law specifies how businesses must calculate that amount.) The credit equals 25% of the tax.
October 1, 2011 and (1) the property tax exemptions apply to assessment years beginning on or after October 1, 2012 and (2) the corporation business tax credit applies to income years beginning on or after January 1, 2013.