The Brownfields Tax Credit Program provides a tax credit of up to 50% after a cleanup is completed, and 25% for a cleanup that uses an Activity and Use Limitation (AUL). The party taking the credit must be an eligible person , and the project must be located in an EDA . In 2013, the deadline for eligible cleanup costs was extended to January 1, 2019. In addition, the tax credit may now be transferred, sold or assigned to another eligible person or to a nonprofit organization. Please complete a Brownfields Credit Application to take advantage of this credit.
The Municipal Tax Abatement Program allows municipalities to negotiate back taxes, including interest, with developers undertaking brownfields projects. A municipality must adopt a by-law before negotiating agreements with developers.
The Economic Development Incentive Program (EDIP) , administered by the Massachusetts Office of Business Development (MOBD), offers tax and other incentives to attract new businesses in targeted areas. The following benefits are available under this program:
5% Investment Tax Credit;
10% Abandoned Building Tax Deduction; and
Local real estate tax incentives such as Tax Increment Financing (TIF) or Special Tax Assessment (STA).
The site must be located in a state designated to be eligible for these incentives.
A 20% state Historic Tax Credit is available for projects on the state Register of Historic Places that meet eligibility requirements.