DOING BUSINESS
Cost of Doing Business
There are many factors that come into play when considering the cost of doing business: real estate prices and rental rates, taxes, labor, and business support. These costs are generally less in the Greater Bridgeport Area than in other areas in Connecticut and New York.
Real Estate
The cost of commercial real estate in Greater Bridgeport can vary depending on the location and property type. A recent survey of properties for sale and lease in the Greater Bridgeport Area showed that the purchase cost of office space and industrial properties may range from $76 to $490 per square foot while the leasing cost averages $17.21 per square foot. These costs are 55% less for purchase and 58% less for lease than similar properties in southeast Connecticut closer to New York.
Taxes
Connecticut has a state corporate income tax with a flat rate of 7.5%, which ranks as the 12th lowest in the U.S. This compares to 8% in Massachusetts, 8.5% in Vermont, up to 10.9% in New York and up to 11.5% in New Jersey. Companies in Connecticut may be eligible to receive refundable tax credits in targeted industries that increase their full-time workforce in the state. Abatements on local property taxes may be available for certain businesses that locate within an Enterprise Zone. The organization Connecticut Innovations can act as a conduit for a sales and use tax exemption for a company’s anticipated qualifying capital equipment and/or construction materials, relieving the company and/or developer from the state’s 6.35% sales tax.
Foreign Trade Zone (FTZ)
76
Foreign Trade Zone 76, managed by the Bridgeport Port Authority, is a secured, neutral area outside of U.S. customs territory. Items imported into the FTZ are exempt from duties and excise taxes. Merchandise may be manipulated, used in manufacturing, inspected, combined, displayed for sale, or re-exported without payment of duty. Customs duties and excise taxes are only applied to the final product if/when the product is imported into the U.S.
Labor
Labor costs in the Greater Bridgeport Area typically reflect the overall Connecticut labor market. Connecticut's minimum wage is currently $15 per hour (as of June 1, 2023). The average weekly wage is $1,070. Connecticut has one of the lower private sector unionization rates in the U.S., in the 6%-7% range, lower than New York (13%), New Jersey (9%), and Rhode Island (9%), according to the U.S. Bureau of Labor Statistics.
Business Support
The Greater Bridgeport Area offers various resources and programs to support businesses, including grants, loans, and business development services. While some services may be free or subsidized, others may come with associated costs or eligibility criteria.