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 , 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 Economic Target Area (ETA) file size 1MB 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.
The Brownfields Tax Deduction Program allows a 100% deduction against federal income for cleanup costs taken in the year they are incurred by an individual or entity with taxable federal income. The MassDEP Brownfields Coordinator must certify in writing that a project is eligible before this deduction is taken. For an application to request a Certification of Eligibility, please visit Brownfields Tax Deduction Program .
Projects that are listed on the National Register of Historic Places that meet other eligibility requirements may be eligible for a 20% federal Historic Tax Credit for work performed that meets the Secretary of the Interior's Standards for Rehabilitation.
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