Connecticut development funding, grants and tax incentives
Grants, loans, tax credits, tax abatements, project financing, solar and storage incentives and utility programs a Connecticut development project can use, with the federal programs that reach Connecticut projects marked Federal. For each: what it is, whether it is taking applications and the official source. Subscribers also see what each is worth, the next deadline, who can apply, who cannot, the steps and the conditions to watch.
Grants
Money that does not have to be repaid, usually through a public agency or municipality.
EPA brownfields assessment, cleanup and revolving loan fund grantsFederalOpening soonEPA grants that pay for assessing and cleaning up brownfields. Recipients are governments, redevelopment agencies and nonprofits; private developers benefit through them, for example by assessment of their site or a loan from a revolving fund. EPA expects the FY2027 competitions to open in fall 2026; no Multipurpose grants will be offered.
What it is worth, the next deadline, who can apply and the steps: for subscribers
CERCLA Section 104(k); Assistance Listing 66.818US EPASourceChecked Oct 6, 2026
Municipal Brownfield Grant ProgramBetween roundsDECD grants to municipalities, economic development agencies and brownfield land banks for assessing, cleaning up and preparing brownfields, which a municipality can direct to a private development partner. Round 24 applications closed September 9, 2026; decisions are expected November or December 2026.
What it is worth, the next deadline, who can apply and the steps: for subscribers
C.G.S. Sections 32-760 et seq.CT Department of Economic and Community Development, Office of Brownfield Remediation and DevelopmentSourceChecked Oct 6, 2026
USDA Rural Energy for America Program (REAP) grants and guaranteed loansFederalPausedUSDA Rural Development grants and loan guarantees for renewable energy systems and energy-efficiency improvements owned by agricultural producers and rural small businesses. Under the October 2026 rule, a project must already be built and operating, with 12 months of production or savings data, before the applicant applies for a grant.
What it is worth, the next deadline, who can apply and the steps: for subscribers
7 CFR Part 4280, Subparts B and C (grants); 7 CFR Part 5001 (guaranteed loans); Federal Register document 2026-20178 (October 1, 2026)USDA Rural Business-Cooperative Service (Rural Development)SourceChecked Oct 7, 2026
EPA Greenhouse Gas Reduction Fund (Solar for All, National Clean Investment Fund, Clean Communities Investment Accelerator)FederalEnded for new projectsThe $27 billion fund created in 2022: $7 billion of Solar for All grants to states and others for low-income solar, and $20 billion to national green banks and community lenders (NCIF and CCIA) that financed clean-energy projects. EPA treats all three as terminated; 2026 court rulings have gone against the terminations, but when or whether money will flow is unclear.
What it is worth, the next deadline, who can apply and the steps: for subscribers
Clean Air Act section 134 (repealed by P.L. 119-21)US Environmental Protection AgencySourceChecked Oct 7, 2026
Loans
Public loans at low or deferred rates.
DOE Energy Dominance Financing Program (section 1706)FederalTaking applicationsDOE loan guarantees for projects that retool, repower, repurpose or replace energy infrastructure that has stopped operating, raise the capacity or output of operating infrastructure, or support electric supply for grid reliability. DOE lists nuclear, coal, oil, gas, geothermal, hydropower, critical materials, grid resilience and transmission.
What it is worth, the next deadline, who can apply and the steps: for subscribers
42 U.S.C. 16517 (Energy Policy Act of 2005, section 1706, as amended by P.L. 119-21)US Department of Energy, Office of Energy Dominance Financing (formerly Loan Programs Office)SourceChecked Oct 7, 2026
Targeted Brownfield Development Loan ProgramBetween roundsLow-interest DECD loans to buyers and owners of brownfields who did not cause the contamination, with flexible or deferred payments that fit around private financing. Loans are made in competitive rounds; the latest was announced with Round 24 on July 15, 2026.
What it is worth, the next deadline, who can apply and the steps: for subscribers
C.G.S. Section 32-760 et seq.CT Department of Economic and Community DevelopmentSourceChecked Oct 6, 2026
Tax credits
Credits against income or business tax, often sold or syndicated to raise equity.
Connecticut housing tax credits (CHFA and DOH Development Engagement Process)Taking applicationsDevelopers seeking CHFA low-income housing tax credits must first go through the Development Engagement Process run with the Department of Housing: an early, non-competitive review that puts projects in the agencies’ pipeline. The fall 2026 window opened October 5 and is scheduled to close November 13, 2026.
What it is worth, the next deadline, who can apply and the steps: for subscribers
26 U.S.C. 42; CHFA Qualified Allocation PlanConnecticut Housing Finance Authority; CT Department of HousingSourceChecked Oct 6, 2026
Low-income communities bonus for the clean electricity investment credit (48E(h))FederalBetween roundsCompetitive allocation, run by the Treasury and IRS with the Department of Energy, of extra investment credit for facilities under 5 MW that are in low-income communities, on Indian land, or part of qualified low-income residential building or economic benefit projects. A project must receive an allocation to claim the bonus.
What it is worth, the next deadline, who can apply and the steps: for subscribers
26 U.S.C. 48E(h); Revenue Procedure 2025-11US Treasury and IRS; US Department of EnergySourceChecked Oct 7, 2026
Clean electricity investment and production credits (48E, 45Y)FederalAvailable under standing lawTechnology-neutral federal credits for new electricity generation and energy storage. Wind and solar lose them unless construction began by July 4, 2026 or the project is placed in service by December 31, 2027. Other technologies, including storage, keep the full credit for construction beginning before 2034, then 75% (2034) and 50% (2035).
What it is worth, the next deadline, who can apply and the steps: for subscribers
26 U.S.C. 48E, 45Y (as amended by P.L. 119-21)US Treasury and IRSSourceChecked Oct 6, 2026
Connecticut historic rehabilitation tax creditAvailable under standing lawDECD tax credit for rehabilitating buildings on the National or State Register into housing of five or more units, mixed use or non-residential use. The rate rises to 30% in an Opportunity Zone or with an affordable housing component.
What it is worth, the next deadline, who can apply and the steps: for subscribers
C.G.S. Section 10-416cCT Department of Economic and Community Development, State Historic Preservation OfficeSourceChecked Oct 6, 2026
Federal historic rehabilitation tax creditFederalAvailable under standing lawA 20 percent federal income tax credit for rehabilitating a certified historic building for income-producing use, under the Secretary of the Interior’s Standards. The state historic preservation office and the National Park Service review the work in a three-part application before the IRS credit is claimed.
What it is worth, the next deadline, who can apply and the steps: for subscribers
26 U.S.C. 47; 36 C.F.R. Part 67National Park Service and IRS, through each state historic preservation officeSourceChecked Oct 6, 2026
Low-income housing tax credit (LIHTC)FederalAvailable under standing lawFederal credit for building or rehabilitating rental housing with income-restricted units, allocated by each state housing agency. From 2026 each state’s competitive (“9 percent”) allocation is 12 percent larger, and projects financed with tax-exempt bonds (“4 percent” credits) need bonds covering only 25 percent of basis when the bonds are issued after 2025.
What it is worth, the next deadline, who can apply and the steps: for subscribers
26 U.S.C. 42(h)(3)(I), 42(h)(4) (as amended by P.L. 119-21)IRS; state housing finance agenciesSourceChecked Oct 6, 2026
New Markets Tax CreditFederalAvailable under standing lawFederal credit that lowers the cost of capital for commercial, industrial, mixed-use and community-facility projects in low-income census tracts. The Treasury’s CDFI Fund gives allocations to Community Development Entities, which invest in projects. The 2025 budget law made the program permanent at $5 billion of allocation a year.
What it is worth, the next deadline, who can apply and the steps: for subscribers
26 U.S.C. 45D(f)(1)US Treasury CDFI FundSourceChecked Oct 6, 2026
Transfer of clean energy tax credits for cash (section 6418) and elective pay (section 6417)FederalAvailable under standing lawLets a project owner sell all or part of eligible federal clean energy credits, including 48E, 45Y, 45X and 45Q, to an unrelated buyer for cash. Tax-exempt and governmental entities can instead take certain credits as a direct payment (elective pay). Both require IRS pre-filing registration.
What it is worth, the next deadline, who can apply and the steps: for subscribers
26 U.S.C. 6418 and 6417 (as amended by P.L. 119-21)US Treasury and IRSSourceChecked Oct 7, 2026
Tax abatements and exemptions
Lower property, sales or income tax on the project, or a payment in lieu of taxes.
Enterprise zone property tax abatementAvailable under standing lawIn designated enterprise zones in more than 45 municipalities, qualifying manufacturing, research, distribution and certain service businesses get a five-year 80% abatement of local property tax on qualifying real estate and machinery.
What it is worth, the next deadline, who can apply and the steps: for subscribers
C.G.S. Section 32-70 et seq.CT Department of Economic and Community Development; municipalitiesSourceChecked Oct 6, 2026
Municipal assessment agreements (12-65b)Available under standing lawA Connecticut town can agree with an owner to fix the property tax assessment on real property, including new improvements, for up to 30 years when the property is used for one of the purposes the statute lists, such as office, retail, housing, manufacturing and warehousing. Each town sets its own terms.
What it is worth, the next deadline, who can apply and the steps: for subscribers
C.G.S. Section 12-65bMunicipalitiesSourceChecked Oct 6, 2026
Opportunity Zone capital gains deferralFederalAvailable under standing lawInvestors who put capital gains into a Qualified Opportunity Fund that develops property or businesses in a designated zone defer tax on those gains and, after a 10-year hold, pay no tax on the fund investment’s growth. The 2025 budget law made the program permanent with a new five-year deferral for investments made after December 31, 2026.
What it is worth, the next deadline, who can apply and the steps: for subscribers
26 U.S.C. 1400Z-1, 1400Z-2 (as amended by P.L. 119-21)US Treasury and IRSSourceChecked Oct 6, 2026
Property tax exemption for Class I renewable energy and solar systems, and uniform solar capacity taxAvailable under standing lawC.G.S. 12-81(57) exempts Class I renewable energy systems (including solar) from local property tax; for commercial or industrial systems installed from 2014 it applies if capacity does not exceed site load. P.A. 25-173 added a solar PV exemption and a uniform solar capacity tax (C.G.S. 12-121dd). P.A. 26-134 (approved June 4, 2026) narrowed the PV exemption and applied the capacity tax from July 1, 2025.
What it is worth, the next deadline, who can apply and the steps: for subscribers
C.G.S. Section 12-81(57); C.G.S. Section 12-121dd (P.A. 25-173 § 57); P.A. 26-134Municipal assessors and tax collectorsSourceChecked Oct 7, 2026
Sales and use tax exemption for solar, geothermal and related systemsAvailable under standing lawConnecticut exempts from sales and use tax solar electricity generating systems, passive and active solar water and space heating systems and geothermal resource systems, including integral equipment, installation and rechargeable storage batteries. It applies to residential, commercial, industrial and income-producing property, new or existing.
What it is worth, the next deadline, who can apply and the steps: for subscribers
C.G.S. Section 12-412(117)(A); DRS Special Notices SN 2007(7) and SN 2010(9.1)Connecticut Department of Revenue ServicesSourceChecked Oct 7, 2026
Tax increment financing districtsAvailable under standing lawConnecticut towns can create tax increment financing (TIF) districts with a master plan adopted by the legislative body, and use part of the new property tax from development in the district for the project, including credit enhancement agreements that return a share of a developer’s new taxes each year.
What it is worth, the next deadline, who can apply and the steps: for subscribers
C.G.S. Chapter 105b (Sections 7-339aa to 7-339kk)MunicipalitiesSourceChecked Oct 6, 2026
Building energy credits ended June 30, 2026 (179D, 45L, 30C)FederalEnded for new projectsThree credits developers used for new buildings ended for new projects under the 2025 budget law: the 179D deduction for efficient commercial buildings (construction beginning after June 30, 2026), the 45L credit for new efficient homes (homes acquired after June 30, 2026) and the 30C credit for EV charging (property placed in service after June 30, 2026).
What it is worth, the next deadline, who can apply and the steps: for subscribers
26 U.S.C. 179D(i), 45L, 30C(i) (as amended by P.L. 119-21)US Treasury and IRSSourceChecked Oct 6, 2026
Project financing (C-PACE and green banks)
Long-term financing for energy and building improvements, including C-PACE repaid through a charge on the property.
Connecticut C-PACE financingTaking applicationsConnecticut Green Bank’s long-term financing for energy, renewable, microgrid, EV charging and resilience improvements, repaid through a benefit assessment on the property. New construction qualifies if it performs above the energy code. The town must have joined.
What it is worth, the next deadline, who can apply and the steps: for subscribers
C.G.S. Section 16a-40gConnecticut Green BankSourceChecked Oct 6, 2026
Connecticut Green Bank Solar PPA, Solar MAP+ and LIME multifamily financingTaking applicationsConnecticut Green Bank products beyond C-PACE: a Solar PPA under which the Green Bank develops and manages solar on commercial, nonprofit, multifamily and public properties; Solar MAP+, which adds no-cost technical help and financing for solar (and optional storage) on affordable multifamily housing; and LIME efficiency loans for multifamily buildings via Capital For Change.
What it is worth, the next deadline, who can apply and the steps: for subscribers
Connecticut Green Bank program pagesConnecticut Green Bank; Capital For Change (LIME)SourceChecked Oct 7, 2026
Solar, storage and clean energy incentives
Payments for the power or certificates a project produces, storage incentives, community solar and state renewable procurements.
Energy Storage Solutions — battery incentives (Eversource, UI, Connecticut Green Bank)Taking applicationsPURA's ratepayer-funded battery program, administered by the Connecticut Green Bank, Eversource and UI, launched in 2022 as a nine-year program aiming for 580 MW of storage by 2030. For applications from April 1, 2026 it pays mainly a 10-year performance incentive for battery discharge during grid events, with a smaller upfront enrollment incentive for priority customers. Residential customers can also enroll.
What it is worth, the next deadline, who can apply and the steps: for subscribers
PURA Docket No. 17-12-03RE03 (07/28/21); Docket No. 25-08-05 (Program Year 5, 12/17/25); Program Manual dated January 27, 2026PURA; Connecticut Green Bank, Eversource and United IlluminatingSourceChecked Oct 7, 2026
DEEP zero-carbon resource procurements (multi-state RFPs)Between roundsDEEP's competitive solicitations for long-term contracts with grid-scale zero-carbon generators, coordinated with Massachusetts, Rhode Island, Maine and Vermont. The 2026 RFP sought nuclear, hydropower, solar, onshore wind with associated transmission, and paired or co-located storage.
What it is worth, the next deadline, who can apply and the steps: for subscribers
P.A. 24-38 (multi-state procurement); DEEP 2026 Zero Carbon RFPConnecticut DEEP (with MA, RI, ME, VT)SourceChecked Oct 7, 2026
Non-Residential Renewable Energy Solutions (NRES) tariffs — Eversource and UIBetween roundsPURA's statewide program, run by Eversource and UI, that pays non-residential owners of solar and other zero-emission Class I generation under 20-year tariffs. Owners choose Buy-All (export all output; on-bill credit or quarterly cash) or Netting (serve the building first, export the excess). Small projects are selected first-come, first-served; medium and large projects (>200 kW to 5,000 kW) bid competitively.
What it is worth, the next deadline, who can apply and the steps: for subscribers
PURA Docket No. 20-07-01 (authorization, 06/30/21); Docket No. 25-08-03 (Program Year 5, 12/17/25)PURA; Eversource and United Illuminating (administrators)SourceChecked Oct 7, 2026
Shared Clean Energy Facility (SCEF) program — community solar, Eversource and UIBetween roundsDEEP-designed, PURA-approved community clean energy program procured by Eversource and UI. Selected projects (100–5,000 kW AC) sell output to the utility under 20-year terms, and subscribers—mostly low-income, moderate-income and small-business customers—receive a bill credit.
What it is worth, the next deadline, who can apply and the steps: for subscribers
C.G.S. Section 16-244z(a)(1)(C); P.A. 18-50, 22-14, 24-31, 25-173; PURA Docket No. 25-08-04 (Year 7, 12/17/25)DEEP; PURA; Eversource and United IlluminatingSourceChecked Oct 7, 2026
Utility and energy-efficiency programs
Ratepayer-funded incentives for efficient buildings, new construction, heat pumps and EV charging, which vary by utility territory.
Connecticut EV Charging Program — Eversource and UI make-ready and charger incentivesTaking applicationsPURA's nine-year program (launched January 2022) run by Eversource and UI for EV charging at homes, multifamily buildings, workplaces and other commercial sites, with a goal of over 65,000 residential and commercial ports by 2030. Commercial sites can get make-ready and equipment incentives; managed-charging incentives pay for off-peak charging.
What it is worth, the next deadline, who can apply and the steps: for subscribers
PURA Docket No. 17-12-03RE04 (07/14/21); Docket No. 24-08-06 (Program Year 4, 12/04/24)PURA; Eversource and United IlluminatingSourceChecked Oct 7, 2026
Energize CT efficiency incentives for existing commercial, industrial and multifamily buildingsTaking applicationsRatepayer-funded efficiency incentives and on-bill financing from Eversource, UI, CNG and SCG under the 2025–2027 Conservation and Load Management Plan: Energy Opportunities (C&I and municipal customers of any size), Small Business Energy Advantage, and multifamily programs for buildings of 5+ units. Covers lighting, HVAC and heat pumps, chillers, refrigeration, motors, controls and cooking equipment.
What it is worth, the next deadline, who can apply and the steps: for subscribers
2025–2027 Conservation and Load Management Plan (approved by DEEP September 2025)Eversource, United Illuminating, Connecticut Natural Gas, Southern Connecticut Gas (Energize Connecticut); DEEPSourceChecked Oct 7, 2026
Energize CT new construction incentives — commercial, multifamily and all-electric homesTaking applicationsEversource, UI, CNG and SCG incentives for new buildings and major renovations. Commercial projects (including multifamily high-rise) choose a path—Zero Net Energy, Whole-Building EUI reduction, High Performance Buildings or Systems—with technical help and per-square-foot or prescriptive incentives. Residential New Construction pays for all-electric homes based on the final HERS score.
What it is worth, the next deadline, who can apply and the steps: for subscribers
2025–2027 Conservation and Load Management Plan (approved by DEEP September 2025)Eversource, United Illuminating, Connecticut Natural Gas, Southern Connecticut Gas (Energize Connecticut)SourceChecked Oct 7, 2026
Program terms, amounts and windows change, and most awards are discretionary. Confirm with the agency before relying on any figure; this is not tax, legal or financial advice. Every entry was checked against its source on or before October 7, 2026.