Connecticut Data Center Tax Incentive Program
Connecticut
Eligibility?
Explicitly Eligible
Overview
Connecticut
Incentive Type
Connecticut Data Center Tax Incentive Program
Benefit Type
Tax Incentive
Effective Date
July 1, 2021 at 8:00:00 PM
Official Identifier
State
Incentive Details
Incentive Description
Authorizes Connecticut to offer long-term tax incentive agreements for large data centers in exchange for major capital investments ($50M–$400M threshold depending on location). Qualifying projects receive sales/use, property, property, and transaction Tax Exemption for up to 30 years, with requirements for municipal fee agreements and local approval before development, and allows colocation tenants to benefit from the incentives.
Key Provisions
• Authorizes DECD to enter into long-term (20- or 30-year) incentive agreements with qualified data centers
• Provides sales and use tax exemptions for qualifying equipment, services, and electricity
• Establishes minimum investment thresholds and a five-year qualification period
• Extends benefits to operators, affiliates, colocation tenants, and future facility expansions; creates compliance, annual fee, and clawback requirements
• Establishes the Office of Data Infrastructure Administration and Security to administer the program.
Benefit Type
20 years exemption of sales and use tax, 30 years if investment exceeds
$200M/$400M depending on location.