Auto Manufacturers Flock to Connecticut for Incentives.

Recently there has been a great interest in setting up automotive factories in the State of Connecticut. AC Cobra is setting up their US headquarters in a factory in Bridgeport to build the famous Cobra automobile and Eurospeed will set up headquarters for the first Chinese motorcycle and automotive company in Ansonia. Connecticut was once the center of automobile manufacturing until the World War broke out. It then focused on manufacturing of military equipment. After World War 2 was over the automotive manufacturers were set up in other States. The factories started to decline as companies moved to cheaper areas in the country.

After losing a lot manufacturing jobs and people moving to other States the legislators recently created new incentives to attract companies back. This has cause a buzz in the the industry and new automotive factories are popping up all over the State.

Connecticut's elimination of the property tax on manufacturing machinery and equipment created an added bonus to locate a factory there. Full funding of the Payments in Lieu of Taxes for manufacturing machinery and equipment will eliminate the local personal property taxes for manufacturers. The change also clarifies that the existing phase-in applies to manufacturing machinery and equipment six years old or older. This will take effect in 2008 with expectations many more companies will flock to the State.

Connecticut's location close to New York, with deep water ports and access to major transportation hubs makes it an ideal place to locate headquarters and manufacturing. As gas prices go up companies want to keep things closer together eliminating the costs that they encounter in the mid west and southern States transporting products during fuel hikes. The recent addition of incentives allows the headquarters to be located near the manufacturing facilities allowing executives to keep a closer eye on production but still be located near New York.

The State also introduced one of the best incentives in North America for television and film companies with a 30% tax credit and exemption for new equipment. Companies that are converting to digital production are seeking properties to set up post production facilities and studios in the State. Multiple movies have already been produced in the State since the new incentive was implemented including War of the Worlds with Tom Cruise. The tax incentive is expected to attract many companies from Los Angeles and studios on the west coast, Vancouver and Toronto Canada were they had incentives. The State is already been nicknamed as Hollywood East as the word of these new better incentives spreads through the industry.

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Manufacturing Tax to be phased out

Film and TV incentives

Equipment exemptions

Enterprise Zones