The New Markets Tax Credit (NMTC) Program drives economic revitalization across Connecticut, from Hartford’s urban neighborhoods to Bridgeport’s manufacturing districts, New Haven’s innovation corridors, and smaller cities throughout the state experiencing post-industrial transition. As a compact state with extraordinary wealth concentration alongside persistent urban poverty, Connecticut presents unique opportunities for NMTC deployment that address economic inequality, revitalize aging commercial infrastructure, and connect underserved communities to the state’s knowledge-based economy. CBO Financial partners with manufacturers, bioscience companies, financial services firms, and community organizations to structure financing solutions supporting Connecticut’s economic transformation.
Connecticut’s economy—characterized by advanced manufacturing, aerospace and defense, financial services, insurance, bioscience, information technology, and precision manufacturing—creates diverse applications for community development investment. The state maintains high per capita income and educational attainment, yet experiences concentrated poverty in urban centers where former industrial employment has disappeared. This economic disparity makes NMTC tax credit financing particularly valuable for projects serving Connecticut’s underserved communities.
How the NMTC Program Works in Connecticut
The NMTC Program incentivizes private capital investment by providing federal tax credits to investors who support qualified businesses and real estate projects in designated low-income census tracts. Community Development Entities (CDEs) certified by the U.S. Treasury’s CDFI Fund receive allocation authority to deploy tax credit equity into qualifying projects throughout Connecticut’s urban centers and smaller cities experiencing economic transition.
In Connecticut, this financing structure addresses several distinct challenges. Hartford, Bridgeport, New Haven, Waterbury, and other cities contain neighborhoods experiencing concentrated poverty, vacant industrial properties, and limited commercial investment despite proximity to job centers and transportation infrastructure. Former manufacturing communities throughout the state require economic diversification as traditional industries decline or relocate. Immigrant communities, particularly concentrated in specific urban neighborhoods, face language barriers and discrimination limiting capital access despite strong entrepreneurship and workforce participation.
The NMTC subsidy—approximately 20% of the qualified equity investment after fees—bridges financing gaps, preventing economically viable projects from achieving financial feasibility. Whether supporting an advanced manufacturing facility in Waterbury, developing a community health center in Bridgeport, financing a bioscience incubator in New Haven, or creating mixed-use downtown revitalization in smaller Connecticut cities, NMTC capital enables projects that conventional underwriting rejects despite strong community impact potential and solid economic fundamentals.
Connecticut’s small geographic size creates unique advantages for NMTC deployment. Projects can access skilled workforces across the state, leverage world-class research universities, including Yale and UConn, and benefit from proximity to the New York City and Boston markets while serving economically distressed communities. This compact geography enables effective coordination between state agencies, local economic development organizations, and CDEs serving Connecticut communities.
For comprehensive information about Connecticut’s broader community development finance ecosystem, explore our resources covering community development financial institutions and multiple capital sources supporting economic growth in underserved markets.
Eligible Projects and Borrowers
NMTC financing in Connecticut supports diverse community development initiatives aligned with the state’s economic strengths and community needs.
Advanced Manufacturing and Aerospace projects include precision manufacturing operations, aerospace component production supporting Connecticut’s substantial aerospace industry cluster, medical device manufacturing leveraging the state’s bioscience expertise, advanced materials production, and manufacturing equipment suppliers. Connecticut’s manufacturing legacy, combined with its skilled workforce and research infrastructure, creates opportunities for NMTC-financed advanced manufacturing operations.
Bioscience and Healthcare projects encompass medical research facilities, commercializing university innovations, pharmaceutical development operations, medical device prototyping and manufacturing, federally qualified health centers serving urban low-income populations, specialty clinics addressing healthcare access gaps, behavioral health facilities, and biotech incubators supporting life sciences entrepreneurship. Connecticut’s concentration of bioscience expertise creates substantial NMTC opportunities in healthcare-related enterprises.
Financial Services and Technology projects include fintech operations, insurance technology development, cybersecurity firms, software development companies in economically distressed areas, data centers, and technology business incubators. Connecticut’s financial services strength, combined with the growing technology sector, creates opportunities for NMTC-financed innovation economy projects.
Commercial and Community Development encompasses downtown revitalization in smaller cities throughout Connecticut, adaptive reuse of vacant industrial properties, mixed-use developments combining housing and commercial space, grocery stores serving urban food deserts, community centers providing social services, and facilities supporting nonprofit organizations serving low-income populations.
Food and Agriculture projects leverage Connecticut’s agricultural heritage through food processing and value-added operations, craft beverage production, specialty food manufacturing, farmers’ market facilities, and food distribution infrastructure that support local producers and address urban food access challenges.
Eligible borrowers include for-profit businesses, nonprofit organizations, cooperatives, real estate developers, and community facilities serving qualified low-income communities. Projects must be located in qualifying census tracts and demonstrate measurable community benefit through job creation, service provision to low-income populations, or economic revitalization of distressed neighborhoods.
CBO Financial provides experienced NMTC project financing, helping Connecticut borrowers navigate qualification requirements, identify appropriate CDEs with Connecticut allocation authority and mission alignment, and structure transactions optimized for community impact while managing Connecticut’s compact geography and proximity to major markets.
Benefits of the NMTC Program for Connecticut
The NMTC Program delivers substantial benefits, particularly suited to Connecticut’s development challenges and opportunities:
Urban Revitalization: Connecticut’s cities require downtown revitalization and commercial corridor development supporting economic activity. NMTC-financed mixed-use projects, historic building rehabilitation, and commercial facilities anchor urban neighborhoods while creating employment accessible to residents.
Manufacturing Retention and Modernization: Connecticut’s manufacturing sector provides quality employment but faces competitive pressures requiring modernization. NMTC capital enables existing manufacturers in distressed communities to upgrade equipment, adopt advanced technologies, and remain competitive while preserving family-sustaining employment.
Bioscience Commercialization: Connecticut’s research universities generate innovations requiring commercialization infrastructure. NMTC-financed laboratory space, manufacturing facilities, and incubators connect university research to commercial applications while creating high-wage employment in underserved communities.
Healthcare Access: Urban Connecticut neighborhoods face challenges despite proximity to major medical centers. NMTC-financed community health centers, specialty clinics, and behavioral health facilities bring essential services to underserved populations while creating healthcare employment opportunities.
Adaptive Reuse: Connecticut’s industrial areas redevelopment supports temporary economic activities. NMTC financing enables adaptive reuse, transforming vacant manufacturing buildings into productive uses such as advanced manufacturing, research facilities, maker spaces, and mixed-use developments.
Immigrant Community Support: Connecticut’s substantial populations demonstrate vigorous entrepreneurial activity but faces barriers to capital access. NMTC supports businesses serving these communities while creating culturally appropriate employment opportunities and strengthening neighborhood commercial vitality.
Transit-Oriented Development: Connecticut’s rail infrastructure connecting cities to New York and Boston creates opportunities for transit-oriented development. NMTC-financed projects near rail stations maximize accessibility while supporting housing affordability and commercial activity.
Whether you’re expanding manufacturing operations, developing bioscience facilities, or creating community infrastructure in Connecticut, CBO Financial can assess your project’s eligibility and financing suited to the state’s unique market costs. Get started exploring your options.
Regulatory & State Development Framework
Connecticut’s economic framework supports projects aligning with NMTC objectives through agencies that understand the state’s unique dynamics. The Connecticut Department of Economic and Community Development (DECD) serves as the state’s lead agency, responsible for strengthening Connecticut’s competitiveness in a rapidly changing, knowledge-based global economy. The agency takes a comprehensive approach, incorporating community development, transportation, education, and arts and culture.
DECD offers various programs that support business attraction and retention, small business development, brownfield remediation, workforce training, and community development, complementing NMTC transactions. Connecticut’s Manufacturing Fund, Small Business Express Program, and Urban Act Grant Program provide financing and incentives that often layer with NMTC capital to reduce total project costs and improve feasibility.
The state’s robust network of development organizations, Small Business Development Centers, Manufacturing Extension Partnerships, and industry-specific associations provides localized support for project planning, workforce development, and coordination with state programs. Connecticut’s institutions, including Yale University, the University of Connecticut, Wesleyan University, and Trinity College, offer technology transfer, resources, research partnerships, and talent pipelines to support innovation economy projects.
Connecticut’s compact has effective coordination among state agencies, municipalities, economic development organizations, and CDEs serving the state. This scale facilitates comprehensive support for NMTC projects that access resources across Connecticut’s financial institutions, including financial partnerships with CDEs holding Connecticut allocation, specializing in the initiation of the state’s regulatory environment, coordinating with DECD programs and local initiatives, and structuring comprehensive financing packages that maximize available resources while ensuring compliance with federal NMTC regulations and Connecticut state requirements.
Get Started with NMTC Financing in Connecticut
Ready to explore how New Markets Tax Credits can support your Connecticut project? CBO Financial’s experienced Team Stands Connecticut’s unique manufacturing capabilities, bioscience expertise, financial services concentration, urban revitalization needs, and a compact geography that enables efficient project execution—and can structure tailored transactions to your specific circumstances.
From initial feasibility assessment through closing and compliance monitoring, we provide comprehensive support throughout the NMTC process. We evaluate projects based on Connecticut-specific factors, including brownfield challenges, historic preservation opportunities, proximity to research institutions, access to skilled workforces, and coordination with state economic development programs.
Contact us today to discover how strategic community development finance can transform your vision into reality while delivering lasting benefits to Connecticut’s underserved communities.