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Business and Occupation Tax Incentive Programs

The governing body of the City of Bridgeport has determined that in order to promote, develop and advance the business prosperity and economic welfare of the City of Bridgeport, its citizens and its industrial complex, and to encourage and assist investments and other business transactions in locating within the City of Bridgeport, and to rehabilitate and assist existing businesses and industries in the City of Bridgeport to stimulate and promote the expansion of all kinds of business and industrial activity in the City, it is necessary and appropriate to provide tax incentives; and the governing body of the City of Bridgeport desires to provide such tax incentives for the purposes hereinabove recited. These tax incentives are as follows:

737.33 NEW BUSINESS INCENTIVES:

(a) Definition: Any new commercial, wholesale, retail, industrial, manufacturing, or service entity which shall physically locate its principal place of business within the corporate limits of the City of Bridgeport either by purchase of real property or by virtue of a lease of five (5) years or more duration, which is subject to the City’s B&O tax and which meet the requirements herein may be eligible for the tax credit. No commercial entity which has conducted business within the corporate limits of the City, either currently or in the past, and which changes its name or changes its business structure shall be considered as a new business unless prior approval has been given by the City.

(b) Tax Credit: The tax credit under this section consists of a credit of 90% of assessed City B&O tax resulting from the creation of the new business the first year and 40% for years two and three. A year, for purposes of the tax credit, is defined as the (12) twelve-month period beginning the first day of the quarter the business meets the qualifications for the tax credit.

1) Investment minimum of $500,000 based on equipment, structures, and improvements;

2) Creation of fifteen new full time jobs;

3) Determination by the City that the tax credit being offered will increase the likelihood of the business locating within the corporate City limits and

4) The real property and improvements of a business must have a useful life of five or more years; or must have a coinciding lease of not less than five years; or must be depreciable/amortizable tangible personal property which has a useful life of not less than five years.

(d) Tax Credit Computation: Tax credits will be considered on the total gross receipts of the business operation once business commences. No tax credits will be granted for costs associated with construction, equipment, infrastructure, land or leasehold acquisition.

(e) Forfeiture: If the number of full time jobs which are created and attributable to the tax credit falls below fifteen, the tax credit will be forfeited for that quarter.

737.34 BUSINESS EXPANSION INCENTIVES:

(a) Definition: Business expansion shall be recognized as the expansion of existing facilities by a commercial, wholesale, retail, industrial, manufacturing or service entity currently conducting business within the corporate limits of the City and which expansion is for the purpose of increasing the economic productivity of the business.

(b) Tax Credit: The tax credit under this section consists of a credit of 90% of assessed City B&O tax resulting from the expansion of the business for the first year and 40% for years two and three. A year, for purposes of the tax credit, is defined as the (12) twelve-month period beginning the first day of the quarter the business meets the qualifications for the tax credit.

1) Expansion investment minimum of $500,000 based on equipment, structures and improvements;

2) Creation of five new full time jobs;

3) Determination by the City that the tax credit being offered will increase the likelihood of the business locating within the corporate City limits and

4) The real property and improvements of the business expansion must have a useful life of five or more years; or must have a coinciding lease of not less than five yeas; or must be depreciable/amortizable tangible personal property which has a useful life of not less than five years.

(d) Tax Credit Computation:

Tax credits will be considered on the total gross revenues resulting from the expansion. Gross revenues qualifying will be determined by taking a three year (or total business revenue if business has been in operation less than three years) average revenue base for the three years preceding the expansion and applying the credit to all revenues which exceed this average. No tax credits will be granted for costs associated with equipment, construction, infrastructure, land or leasehold acquisition.

(e) Forfeiture:

If the number of full time jobs which are created and attributable to the tax credit falls below five, the tax credit will be forfeited for that quarter.

737.35 ANNEXED BUSINESS INCENTIVES:

(a) Definition: Business brought within the corporate limits of the City by way of minor boundary adjustment annexation.

(b) Tax Credit: The tax credit under this section consists of a credit of 90% of assessed City B&O tax generated by the annexed business for the first year and 40% for years two and three. A year, for purposes of the tax credit, is defined as the (12) twelve-month period beginning the first day of the quarter the business meets the qualifications for the tax credit.

1) The annexed business must have a minimum appraised value of $500,000. This appraised value will include equipment, structures and improvements;

2) The annexed business must have a minimum of five full time jobs;

3) Determination by the City that the tax credit being offered will increase the likelihood of the business annexing into the corporate City limits and

4) The real property and improvements of an annexed business must have a useful life of five or more years; or must have a coinciding lease of not less than five years, or must be depreciable/amortizable tangible personal property which has a useful life of not less than five years.

(d) Tax Credit Computation:

Tax credits will be considered on the total gross revenues of the business operation once annexation is complete.

(e) Forfeiture:

If the number of full time jobs which are realized into the city limits resulting from the annexation and attributable to the tax credit falls below five, the tax credit will be forfeited for that quarter.

737.36 BUSINESSS ENTERPRISE ZONE INCENTIVES:

(a) Definition: Any entity that locates a new business or expands an existing business in the City’s B-1 Zoning District and located between the intersection of State Route 58 and State Route 131 which has been designated as a “Business Enterprise Zone.”

(b) Tax Credit:

I. NEW BUSINESS The tax credit under this section consists of a credit of 90% of assessed B&O tax on gross revenues the first year and 40% for years two and three. A year, for purposes of the tax credit, is defined as the (12) twelve-month period beginning the first day of the quarter the business meets the qualifications for the tax credit.

II. EXPANDING EXISTING BUSINESS The tax credit under this section consists of a credit of 90% of assessed B&O tax on qualifying gross revenues resulting from the expansion the first year and 40% for years two and three. A year, for purposes of the tax credit, is defined as the (12) twelve-month period beginning the first day of the quarter the business meets the qualifications for the tax credit.

1) Investment of $20,000 minimum;

2) Determination by the City that the tax credit being offered will increase the likelihood of the business locating or expanding in the City’s “Business Enterprise Zone” and

3) The real property and improvements of the business location or expansion must have a useful life of five or more years; or must have a coinciding lease of not less than five year; or must be depreciable/amortizable tangible property which has a useful life of not less than five years.

(d) Tax Credit Computation: Tax credits will be considered on total gross revenues of the new business. For expanding business, qualifying revenues will be determined by taking a three year average revenue base for the three years preceding the expansion (or total business revenue if business has been in operation for less than three years) and applying the credit to all revenues which exceed this average. No credit will be granted for costs associated with construction, equipment, infrastructure, land or leasehold acquisition.

737.37 INDUSTRIAL ENTERPRISE ZONE INCENTIVES:

(a) Definition: Any entity that locates a new business or expands an existing business in the City’s I-1 Zone which has been designated as “Industrial Enterprise Zone”.

(b) Tax Credit:

1) Investment of $500,000 including equipment, structures, and improvements;

2) Creation of five new full time jobs;

3) Determination by the City that the tax credit being offered will increase the likelihood of the business locating or expanding in the City’s “Industrial Enterprise Zone” and

4) The real property and improvements of the business location or business expansion must have a useful life of five or more years; or must have a coinciding lease of not less than five years; or must be depreciable/amortizable tangible property which has a useful life of not less than five years.

(d) Tax Credit Computation: Tax credits will be considered on total gross revenues of the new business. For expanding business, qualifying revenues will be determined by taking a three year average revenue base for the three years preceding the expansion (or total business revenue if business has been in operation for less than three years) and applying the credit to all revenues which exceed this average. No tax credits will be granted for costs associated with construction, equipment, infrastructure, land or leasehold acquisition.

(e) Forfeiture: If the number of full time jobs which are created and attributable to the tax credit falls below five, the tax credit will be forfeited for that quarter.

737.38 FAÇADE IMPROVEMENT INCENTIVES

(for Business Enterprise Zone)

(a) Definition: Any business entity that remodels the exterior façade of a building in the B-1 Zoning District and is located between the intersection of State Route 58 and State Route 131 may be eligible.

(b) Tax Credit: 100% B&O tax credit on tax amount due for three years up to a maximum total credit equal to the investment or $5,000.00 whichever is less, over the three year period. A year is defined as the (12) twelve-month period beginning the first day of the quarter the business meets the qualifications for the tax credit.

1) A business or property owner must make application and receive approval from the City prior to making improvements.

2) Successful applicants must invest a minimum of $1,000.

3) Improvements must coincide with the theme and character established by the City of the Main Street Revitalization Project. The Bridgeport Planning Commission shall have responsibility for approving the eligibility of these improvements.

737.39 DEVELOPER INCENTIVES:

(a) Definition: Any residential, commercial or manufacturing developer who meets the requirements may qualify for the City’s Tax Credit Program. The tax credit will be applied to the B&O taxes resulting from the qualified development only. Only B&O tax assessed on retail sales and rentals qualify for this credit.

(b) Tax Credit: The tax credit under this section consists of 90% of assessed B&O tax for the first year and 40% for years two and three. The three-year period begins at the time the first retail sale or lease rental is consummated and runs consecutively thereafter. A year is defined as the (12) twelve-month period beginning the first day of the quarter the business meets the qualifications for the tax credit.

1) Investment minimum of $500,000 based on equipment, structures, and infrastructure improvements;

2) Determination by the City that the tax credit being offered will increase the likelihood of the development being placed within the corporate city limits and

3) The real property and improvements of the development must have a useful life of five or more years.

(d) Tax Credit Computation: Tax credits will be considered on the gross receipts from retail sales or leases only. No tax credits will be granted for costs associated with construction, equipment, infrastructure, land or leasehold improvements.

737.40 CITY ECONOMIC DEVELOPMENT GRANT/LOANS

(a) Definition: To the extent that it may lawfully do so, the City in its sole discretion, may choose to extend a general economic development grant or loan for the benefit of a business or developer. This grant or loan is based on availability of City funds, the economic impact the development has on the community, and the extent to which the development coincides with City development initiatives and efforts. The City Council may award the grant or loan after the request has been reviewed and a subsequent recommendation is made by the City Manager and the City Economic Development Committee. The grant or loan may be in the form of a 100% grant, matching grant, loan, or a combination of public and private dollars.

737.41 GENERAL DEFINITIONS

As used herein the following terms shall mean:

(a) “New Employee” means a person who is hired and employed in a new business or annexed business who was not previously employed within the corporate limits of the City by such business. A new employee must be employed at least 120 hours per month at a wage not less then the federal minimum wage or must work for at least six months during the taxable year.

(b) “New job” means a job which did not exist in the business of the taxpayer within the corporate limits of the City prior to a qualified investment being made, provided this job is directly attributable to the qualified investment and is filled by a new employee as defined herein.