Question

Please summarize the economic development tools/program: Manufacturing Plant Zone in the state of Connecticut

What are the tools designed to accomplish, and do you see any potential barriers to successful implementation?

Answer 1

For the development of the Manufacturing Plant Zone in Connecticut, the government has implemented various economic programs which provide incentives to the manufacturers.

The government of Connecticut has provided manufacturers and service companies with a five-year tax abatement scheme. Manufacturers get a five -year scheme where they can abate 80% of the property tax. Service companies can abate 40% of property tax if they invest $20-90 million. Both of them are also offered a business tax credit if they meet the required conditions for a 10-year period. Apart from these schemes, the government of Connecticut has promoted this sector making it one of the major sector of the state.

Major barriers to successful implementation and growth of this sector are lack of a plan of action for small businesses and skill gap among manufacturers. Also, the conditions placed for enjoying the benefits of economic schemes like tax abatement and the business credit are not that easy to achieve.

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