Businesses that are willing to invest in Naugatuck could see an extra incentive to do so.
Local officials are considering a tax incentive program that gives Naugatuck companies, and those looking to locate here, a break on their taxes for up to five years if they invest significantly in the borough. Those who are eligible include businesses that are moving to Naugatuck, constructing new buildings or improving existing buildings.
“For many years, we have struggled, as many communities have, in attracting businesses,” said Mayor Bob Mezzo. “We have many vacant buildings. ...In an ideal world, you wouldn’t have to offer an incentive. But because the way the world works, extra incentives are becoming necessary to help communities like Naugatuck.
“We are not a big city, and we don’t have the demographics of a Fairfield County,” he said. “However, this will give us additional tools in our arsenal to try to entice businesses to come here or to expand here."
He said the borough has had success in luring businesses to the industrial parks because of a state Enterprise Zone tax abatement program that was enacted in the 1990s. That program is for manufacturing and distribution companies only, not general commercial businesses.
Naugatuck's tax abatement proposal, which was drafted by a committee of the Naugatuck Economic Development Corp., would be adopted in the form of an ordinance if approved by the Board of Mayor and Burgesses. On Tuesday, it was given a favorable review by the joint boards of Mayor and Burgesses and Board of Finance.
- See a full breakdown of the draft tax abatement proposal attached to this article as a PDF.
- Read more about the program on Mayor Mezzo's blog here.
- Click here to read what Naugatuck officials are saying about the proposed ordinance.
The following is a breakdown of what the companies would be eligible for based on their investments:Cost of Improvements 1st year 2nd year 3rd year 4th year 5th year Term Greater than $3M 100% 80% 60% 40% 20% Up to Five Years $500K to $299.9M 100% 50% 0% 0% 0% Up to Two Years $25,000 to $499.9K 50% 25% 25% 0% 0% Up to Three Years