The Massachusetts Brownfields Tax Credit (BTC) is an incentive program that allows property owners or lessees to remediate contaminated land.
Since Massachusetts requires owners or lessees of contaminated properties to remediate the land regardless of who caused the contamination, the BTC exists to lessen the financial burden for owners who did not cause the contamination but are obligated to clean up the land.
MassDEP states that the BTC program exists to foster, “the cleanup and redevelopment of brownfields properties as a way to stimulate the economy and promote environmental protection goals.”
The BTC amounts to 50% of the eligible costs of a qualified remediation when the permanent solution does not have restrictions, such as an Activity and Use Limitation (AUL), and the BTC amounts to 25% of the eligible costs when the permanent solution has restrictions. The costs that are BTC eligible are those “direct” environmentally related costs. The costs include:
lab testing costs
21E related legal expenses
soil removal and disposal
clean fill costs
The Brownfields Tax Credit is earned following the remediation of an environmentally contaminated property that has “achieved” a permanent solution or ROS.
Current Requirements to receive the BTC:
Taxpayer cannot have caused the contamination
Taxpayer must be the owner or lessee of the contaminated site during the cleanup period
The site must be closed out with a permanent solution or ROS
The money spent on the remediation must amount to at least 15% of the site’s assessed value at the time the remediation began
The site must be in an economically distressed area
The site must be used for business purposes
The remediation expenses must be incurred by an entity, trust, not-for-profit corporation
View our resources for valuable information on:
Brownfields Tax Credits
Historic Tax Credits
Investment Tax Credits
And much more!
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