Town of Hamden Tax Incentives
Real Property Tax Incentives
The Town offers assessment deferrals (tax abatements) to businesses when the business newly constructs or makes improvements to real property. Increased taxes attributable to the improvements may be eligible for assessment deferrals depending on the total cost of the improvements. The assessment deferral is based on only the amount of the increased assessment. The minimum cost of improvements eligible for this incentive program is $25,000 in the two NRZ’s and $50,000 in all other areas of town. The levels of deferrals listed below are maximums. Lesser incentives may be granted and applications may also be rejected.
If granted, deferrals begin on the October 1 grand list following the issuance of a certificate of occupancy from the Building Department. The Town may cancel the program and require full or partial payback of taxes deferred under the program if the business substantially reduces its operation, assigns its rights, or sells or transfers the property during the payback period. Applicants that are delinquent in taxes to the Town will not be considered for incentives unless arrangements are made with the tax collector to pay these taxes.
Click here to view the Neighborhood Revitalization Zone Map
For Businesses NOT Located In or Locating To a Neighborhood Revitalization Zone:
| Costs of Improvements | Percent deferred of the increased assessment | Time period for assessment | Pay back period |
|---|---|---|---|
| Over $15 Million | year 1-to a maximum of 70% year 2-to a maximum of 60% year 3-to a maximum of 50% year 4-to a maximum of 40% year 5-to a maximum of 30% year 6-to a maximum of 20% year 7-to a maximum of 10% |
7 years | 10 years |
| $3 Million to $15 Million | year 1-to a maximum of 70% year 2-to a maximum of 60% year 3-to a maximum of 50% year 4-to a maximum of 40% year 5-to a maximum of 30% year 6-to a maximum of 20% |
6 years | 10 years |
| $500,000 to $2,999,999 | year 1-to a maximum of 70% year 2-to a maximum of 60% year 3-to a maximum of 60% |
2 years | 5 years |
| $50,000 to $499,999 | year 1-to a maximum of 50% year 2-to a maximum of 40% year 3-to a maximum of 30% |
3 years | 5 years |
For Businesses Locating to or Located in a Neighborhood Revitalization Zone:
| Costs of Improvements | Percent deferred of the the increased assessment | Time period for assessment | Pay back period |
|---|---|---|---|
| Over $3 Million | year 1-to a maximum of 70% year 2-to a maximum of 70% year 3-to a maximum of 70% year 4-to a maximum of 70% year 5-to a maximum of 70% |
5 years | 10 years |
| $500,000 to $2,999,999 | year 1-to a maximum of 100% year 2-to a maximum of 100% |
2 years | 5 years |
| $25,000 to $499,999 | year 1-to a maximum of 50% year 2-to a maximum of 50% year 3-to a maximum of 50% |
3 year | 5 years |
Personal Property Tax Incentives
The Town may offer assessment deferrals (tax incentives) to any party owning or proposing to acquire an interest in real property upon which a manufacturing facility is located or proposed to be located. The increased portion of the assessment of personal property in that faculty may be deferred depending on the net increase in personal property. To be eligible, the minimum increase of assessment on a project is $25,000. The levels below are maximums. Lesser incentives may be granted and applications may also be rejected.
If granted, deferrals begin of the October 1 grand list following the issuance of a certificate of occupancy from the Building Department. The Town may cancel the program and require full or partial payback of taxes deferred under the program if the business substantially reduces its operation, assigns its rights, or sells or transfers the property during the pay back period. Applicants delinquent in taxes to the Town will not be considered for incentives unless arrangements are made with the tax collector to pay these taxes..
| Amount of net increase in the assessed value of personal property | Percent deferred of the increased portion of the assessment | Time period for assessment | Pay back period |
|---|---|---|---|
| $3 Million plus | year 1-to a maximum of 70% year 2-to a maximum of 70% year 3-to a maximum of 70% year 4-to a maximum of 70% year 5-to a maximum of 70% |
5 years | 10 years |
| $500,000 to $3,000,000 | year 1-to a maximum of 70% year 2-to a maximum of 70% |
2 years | 5 years |
| $25,000 to $499,999 | year 1-to a maximum of 50% year 2-to a maximum of 50% year 3-to a maximum of 50% |
3 year | 5 years |
For more information, contact the Department of Economic and Neighborhood Development before initiating the eligible project. Applications may be completed online, printed and submitted by mail.