Tax & Financial incentives – BIOS Homes: The Housing Solution

Tax & Financial incentives in CT For Modular Manufacturing

Within Connecticut there are 4 Foreign Trade Zones and 72 Opportunity Zones along with various federal, state and local tax and financial incentives available for businesses, developers and investors contributing to the state’s economic growth. Connecticut makes job creation and retention a high priority and offers performance-based as well as industry-specific and targeted geographical incentives to assist companies that are starting, relocating, or expanding operations in the state. Connecticut also offers numerous pre-seed and seed financing options through the state’s quasi-public agencies.

View the incentives below or contact us for assistance in matching available incentives with the needs of your project.

BIOS Homes Angel Investor Tax Credit Program

Angel Investor Tax Credit Program

BIOS Homes offers an attractive opportunity for angel investors through Connecticut’s Angel Investor Tax Credit Program. Investors who contribute $25,000 or more in cash to BIOS Homes can benefit from this program. Here’s how it works:

Investment Threshold: Minimum cash investment of $25,000.
Tax Credit Amount: Investors receive a tax credit equal to 25% of their cash investment.
Credit Cap: Each investor can receive up to $250,000 in total tax credits.
Claim Timing: The tax credit must be claimed in the same taxable year as the investment.
Eligibility: BIOS Homes is a qualified Connecticut business, approved and eligible for this tax credit program.

By investing in BIOS Homes, angel investors not only support the development of cutting-edge, energy-efficient modular homes but also gain significant tax benefits, fostering innovation and job creation in Connecticut.

BIOS Homes: Exploring Innovative Building Materials with Support from the CT Bioscience Innovation Fund

BIOS Homes is committed to exploring the use of alternative framing products, such as fast-growing hemp, to enhance sustainability and innovation in modular construction. Our efforts align with Connecticut’s dedication to fostering bioscience advancements.

The $200 million CT Bioscience Innovation Fund, administered by CT Innovations (CI), provides targeted financial assistance to start-ups, early-stage businesses, nonprofits, and accredited colleges and universities. Investments from the fund, available as grants, equity investments, and loans, are designed to commercialize bioscience breakthroughs.

By leveraging this fund, BIOS Homes aims to integrate cutting-edge bioscience innovations into our construction processes, paving the way for more sustainable and efficient building practices. This support will enable us to advance our research, develop new products, and bring groundbreaking solutions to the market.

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BIOS Homes: Exploring Renovation and Brownfield Remediation for Sustainable Development

BIOS Homes is dedicated to sustainability and innovation in modular construction. As part of our commitment, we will prioritize renovating existing spaces before creating new ones, contributing to the revitalization of underutilized areas.

Brownfield Remediation Funding

The CT Office of Brownfield Remediation and Development offers tailored solutions for each site, which may include:

Financial Aid: Funding support to cover remediation and redevelopment costs.
Liability Relief: Assistance in mitigating legal and financial risks associated with brownfield sites.
Technical Support and Project Management: Expert guidance and management throughout the remediation process.
Comprehensive Permitting Assistance and Inter-Agency Coordination: Streamlined permitting processes and coordination with various agencies to ensure project success.

By leveraging these resources, BIOS Homes will transform neglected properties into vibrant, energy-efficient spaces, enhancing community development and environmental health while adhering to our sustainable construction principles.

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BIOS Homes: Leveraging C-PACE for Sustainable Energy Solutions

Commercial and Industrial Property Assessed Clean Energy (C-PACE)

BIOS Homes is committed to promoting sustainable energy solutions for commercial and industrial properties. The C-PACE program offers an innovative financing model that enables property owners across Connecticut to implement energy-efficient and clean energy improvements.

Accessible Financing: Property owners can access financing to make qualifying energy efficiency upgrades and install clean energy systems.
Repayment via Property Tax Bill: The investment is repaid through an additional charge (“assessment”) on the property tax bill, ensuring a convenient and manageable repayment process.
Benefits: Cleaner, cheaper, and more reliable energy solutions that enhance property value and reduce operational costs.

By utilizing the C-PACE program, BIOS Homes aims to support building owners in adopting sustainable practices, contributing to a greener future while achieving significant cost savings.

BIOS Homes: Partnering with Connecticut Innovations (CI) for Growth and Innovation

Connecticut Innovations (CI)

Connecticut Innovations (CI) is the premier source of financing and continuous support for Connecticut’s innovative and growing companies, particularly in the bioscience and high technology sectors. As one of the most active strategic venture capital organizations on the East Coast, CI offers a wealth of resources to foster business success:

Financing: Access to venture capital and other funding opportunities to fuel growth and innovation.
Management Expertise: Guidance and support in developing effective management strategies.
Product Development: Assistance in bringing innovative products to market.
Marketing Support: Strategies and resources to enhance market presence and reach.
Governance: Best practices in corporate governance to ensure sustainable growth.

By partnering with Connecticut Innovations, BIOS Homes will leverage these resources to advance our mission of revolutionizing modular and panelized construction with sustainable and high-tech solutions. This collaboration will enable us to drive innovation, expand our market reach, and achieve long-term success.

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BIOS Homes: Partnering with CT Green Bank for Clean Energy Solutions

CT Green Bank

CT Green Bank is a pioneering institution, the first of its kind in the U.S., dedicated to accelerating the deployment of clean energy solutions. It achieves this by leveraging limited public funds to attract private capital investment in clean energy projects.

Accelerating Clean Energy Deployment: CT Green Bank plays a pivotal role in speeding up the adoption of clean energy technologies and practices across Connecticut.
Attracting Private Investment: By using public funds strategically, CT Green Bank is able to attract significant private capital, multiplying the impact of clean energy initiatives.
Financial Innovation: CT Green Bank’s approach demonstrates financial innovation in the clean energy sector, setting an example for other states and regions.

Partnering with CT Green Bank, BIOS Homes aims to incorporate clean energy solutions into our modular and panelized construction projects. By leveraging the expertise and resources of CT Green Bank, we can accelerate the transition to sustainable, energy-efficient buildings, benefiting both our clients and the environment.

BIOS Homes: Engaging with CTNext for Innovation and Growth

CTNext

CTNext serves as Connecticut’s vibrant innovation ecosystem, providing start-ups and entrepreneurs with essential resources, guidance, and networking opportunities to accelerate their growth and success.

Resource Access: CTNext offers access to a wide range of resources, including funding, mentorship programs, and educational opportunities, to support start-ups at every stage of development.
Guidance and Support: Through expert guidance and support, CTNext helps entrepreneurs navigate the challenges of launching and scaling their businesses.
Networking Opportunities: CTNext provides valuable networking opportunities, connecting entrepreneurs with industry leaders, investors, and potential collaborators.

BIOS Homes is actively engaged with CTNext to leverage its resources and expertise in advancing our innovative solutions for modular and panelized construction. By tapping into CTNext’s ecosystem, we aim to accelerate our growth, foster innovation, and achieve sustainable success in the construction industry.

BIOS Homes: Creates Data Center for Ap

BIOS helps you live your best life. At the forefront of this data center initiative is BIOS, an innovative app with a social media interface that collects data relevant to home buying and lifestyle preferences. BIOS aims to create a comprehensive platform that allows users to control their homes and live their dream life. This vision extends to leveraging data center incentives to develop a global app that integrates all aspects of life into one seamless interface.

Imagine a world where managing your finances, monitoring your health, planning your vacations, and maintaining your home and car are all streamlined into one user-friendly app. This app, powered by AI, not only centralizes these aspects of your life but also provides personalized suggestions to enhance your well-being and efficiency. Need to schedule a car maintenance appointment? The app can recommend nearby service centers and even book the appointment for you. Planning a vacation? The app can suggest destinations based on your preferences and budget.

By utilizing data center incentives, BIOS can create a platform that not only simplifies daily tasks but also enriches users’ lives by providing valuable insights and recommendations. This integration of technology and lifestyle is the future of convenience and efficiency, all made possible by innovative data center solutions.

By leveraging data center incentives, BIOS can take advantage of a new law that allows the Department of Economic Community Development (DECD) to enter into incentive agreements with qualified data centers for 20-30-year terms. These incentives include sales and use tax exemptions for goods and services purchased by the data center, property tax exemptions, and exemption from any future financial transactions taxes.

To qualify for the 20-year term, data centers must make a qualified investment in the site of $50 million if the site is in an opportunity zone or $200 million if it is not. For a 30-year term, the investment must be $200 million in an opportunity zone and $400 million elsewhere.

These incentives can significantly reduce the operational costs of the data center, making it more financially viable and allowing BIOS to allocate resources to develop innovative technologies and services. Additionally, the long-term nature of the incentive agreements provides stability and certainty for BIOS, enabling strategic planning and long-term growth.

DIGITAL MEDIA CREDITS

Digital Media Credits: Eligible production companies can receive a tax credit on a sliding scale up to 30% on qualified digital media and motion picture production, pre-production and post-production expenses incurred in the state, up to $1 million or more.

Using digital media credits, BIOS can expand its business in several ways:

App Development: Invest in the development of the BIOS app, enhancing its features and user interface to attract more users and increase engagement.
Marketing and Promotion: Use digital media credits to create engaging marketing campaigns to promote the BIOS app and its benefits, reaching a wider audience and increasing app downloads.
Content Creation: Produce high-quality content, such as video tutorials and lifestyle articles, to educate users about the features of the BIOS app and how it can improve their lives.
Manufacturing Promotion: Create promotional videos showcasing BIOS Homes’ innovative manufacturing processes and energy-efficient homes, attracting more clients and investors.
Interactive Features: Develop interactive features within the BIOS app, such as virtual tours of homes and customizable design options, to provide users with a unique and engaging experience.

By utilizing digital media credits, BIOS can enhance its digital presence, attract more users to its app, and promote its manufacturing business, ultimately driving growth and expanding its market reach.

Utilizing Enterprise Zone and Target Investment Community Incentives, BIOS can benefit from:

Property Tax Abatement: Eligible for a 5-year, 80% abatement of local property taxes on qualifying real estate and personal property as a result of a business expansion or renovation project.
Corporate Business Tax Credit: Eligible for a 10-year, 25% credit on the portion of the corporate business tax directly attributable to the expansion or renovation project, with the potential for an increase to 50% based on the number of new jobs created.
Bradley Airport Development Zone: This zone offers tax incentives for manufacturers and related businesses that build or substantially renovate facilities in the area, creating new jobs. It includes specified census blocks in East Granby, Suffield, Windsor, and Windsor Locks.
Bioscience Enterprise Corridor Zone: Eligible businesses with fewer than 300 employees engaged in bioscience, biotechnology, pharmaceutical, or photonics research, development, or production in CT can benefit from enterprise zone-level benefits. This includes certain businesses and commercial properties in specified census blocks in Farmington, Hartford, Bristol, and New Britain.

By leveraging these incentives, BIOS can reduce operating costs and facilitate business expansion, fostering growth and job creation in targeted communities.

JOBSCT – EARN AS YOU GROW

Under the JOBSCT – Earn as You Grow program, BIOS can accelerate high-quality private-sector job growth in Connecticut by qualifying for rebates based on employees’ income. By locating or expanding in distressed municipalities or opportunity zones, BIOS can qualify for a 50% rebate, while companies in other municipalities can qualify for a 25% rebate.

To qualify, BIOS must create at least 25 new jobs in a Grow CT focus industry with salaries at least 85% of the median household income of the municipality where the jobs will be located. This program offers a valuable opportunity for BIOS to expand its workforce, contribute to economic growth in distressed areas, and benefit from significant cost savings through the rebate incentives.

MANUFACTURING ASSISTANCE ACT DECD’s traditional loan tool offers direct financial assistance via low-interest loans for projects with strong economic development potential. Funding may be provided to any economic-based industry. The funds may be used for machinery and equipment, construction/leasehold improvements, inventory, relocation, training and other eligible project related costs.

Under the Manufacturing Assistance Act, BIOS can access low-interest loans to support projects with strong economic development potential. This financial assistance can be used for various purposes, including machinery and equipment, construction or leasehold improvements, inventory, relocation, training, and other eligible project-related costs. This support can help BIOS enhance its manufacturing capabilities, expand its operations, and drive economic growth in Connecticut.

Utilizing all of the data center incentives available can provide numerous benefits for BIOS Homes and contribute to the growth of Connecticut’s economy. These incentives can:

Reduce Operating Costs: By taking advantage of tax exemptions and financial incentives, BIOS Homes can reduce its operating costs, allowing for more investment in growth and innovation.
Foster Economic Growth: By expanding its operations and creating new jobs, BIOS Homes can contribute to economic growth in Connecticut, particularly in distressed communities and opportunity zones.
Enhance Competitiveness: Access to incentives can enhance BIOS Homes’ competitiveness by providing resources for innovation, technology adoption, and market expansion.
Support Sustainability: Incentives for energy-efficient practices and alternative energy sources can align with BIOS Homes’ commitment to sustainability, reducing its environmental impact.
Attract Investment: The availability of incentives can make BIOS Homes a more attractive investment opportunity, potentially attracting additional capital and resources to fuel its growth.
Community Development: By investing in distressed communities and opportunity zones, BIOS Homes can contribute to community development, infrastructure improvement, and job creation.

Manufacturing Innovation Fund BIOS can benefit from the Manufacturing Innovation Fund (MIF) by accessing its $75 million investment in loans and grants for businesses, industry, and competitive initiatives. This support can help BIOS drive growth, innovation, and progress in the advanced manufacturing sector. By leveraging the MIF, BIOS can access funding to support its manufacturing operations, invest in research and development, and implement initiatives that enhance its competitiveness and sustainability in the market.

The Pre-Seed Financing Program offered by Connecticut Innovations (CI) could be beneficial for BIOS Homes. This program provides pre-seed financing to businesses for developing proof of concepts and support services. Businesses can receive financial assistance of up to $150,000 per business. To be eligible, a business must be principally located in CT, with at least 75% of its employees working in the state. Additionally, the business must demonstrate private investment dollars of at least 50 cents for every dollar of financial assistance sought from the program.

This program could support BIOS Homes in developing its innovative concepts and services, providing the necessary financial boost to drive its growth and development.

SALES AND USE TAX EXEMPTION Connecticut Innovators (CI) can act as a conduit for a sales and use tax exemption for the company’s anticipated qualifying capital equipment and/or construction materials. This exemption relieves the company and/or the developer from the state’s 6.35% sales tax, up to the CI Board-approved amount. This procedure is subject to review and approval by the CI Board of Directors and CT Dept. of Revenue Services.

Under the Sales and Use Tax Exemption program facilitated by Connecticut Innovations (CI), BIOS Homes can potentially receive an exemption from the state’s 6.35% sales tax on qualifying capital equipment and/or construction materials. CI acts as a conduit for this exemption, subject to review and approval by the CI Board of Directors and CT Dept. of Revenue Services. This exemption could result in significant cost savings for BIOS Homes, reducing the financial burden associated with purchasing necessary equipment and materials for its operations.

SMALL BUSINESS BOOST FUND The Connecticut Small Business Boost Fund gives small business owners access to flexible funding for capital expenditures and working capital and connects them with support services. It’s a personal, equitable approach to lending, because business owners are more than just numbers on a spreadsheet. Small businesses and nonprofits can borrow between $5,000 and $500,000 depending on eligibility and need, and can choose how they spend the money — on equipment, payroll, utilities & rent, supplies, marketing & advertising, eligible refinancing, building renovations and other expenses.

The Small Business Boost Fund could be a valuable resource for BIOS Homes, providing access to flexible funding for various needs such as capital expenditures and working capital. With loans ranging from $5,000 to $500,000, BIOS Homes can choose how to allocate the funds based on their specific requirements, whether it’s for equipment, payroll, utilities, rent, marketing, or other eligible expenses. This fund offers a personalized and equitable lending approach, focusing on the unique needs of small business owners.

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The Urban and Industrial Site Reinvestment Tax Credit Program offers a significant incentive for businesses like BIOS Homes to invest in eligible projects in distressed or other communities. With a minimum investment of $5 million in distressed communities and $50 million in other communities, businesses can receive a dollar-to-dollar corporate tax credit of up to 100% of their capital investment.

The tax credits can be used over a period of 10 years, with a gradual increase in the percentage of the credit available:

Years 1–3: 0%
Years 4–7: 10%
Years 8–10: 20%

If BIOS Homes is unable to utilize the earned credits, they have the option to carry them forward for up to 5 consecutive years or transfer them to another corporate taxpayer for immediate use. This program can significantly reduce the tax burden for BIOS Homes and incentivize investment in communities that need revitalization.

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