Bloomfield-based health insurer Cigna Corp. hopes to tap tax incentives enacted by Connecticut in 2021 for a $386 million renovation of its Windsor data center. A “host municipality agreement,” however, is required before data center owners or operators can tap the state’s relatively new Connecticut Data Center Tax Incentive Program for projects worth more than $200 million, according to an explanation presented to the board by Economic Development Director Patrick McMahon. The state’s Data Center Tax Incentive Program, created in 2021, allows investments in data centers to qualify for local and state tax incentives, including sales and use tax exemptions on goods and services; property tax exemptions; and exemptions on future state financial transaction taxes. Cigna’s project will come with significant tax benefits to Windsor, but those will be short-lived due to rapid depreciation of data center equipment, McMahon wrote. The town is projected to reap an additional $1.3 million in taxes in the project’s first year, rising to $3 million in additional tax benefit in year five. But depreciation will quickly see that revenue fade, beginning in year six, McMahon wrote.
https://www.hartfordbusiness.com/article/cigna-plans-386m-renovation-of-windsor-data-center?utm_source=Newsletter&utm_medium=email&utm_content=Cigna+plans+%24386M+renovation+%7C+A+new+type+of++home++office&utm_campaign=HBJ+Today+062222