Brownfields Tax Credit (BTC)

The BTC may be available to individual taxpayers, non-profit organizations, and business corporations that clean up contaminated property in Massachusetts.

The taxpayer must complete the cleanup in compliance with standards set out by the Department of Environmental Protection (DEP).

Depending on the extent of the completed cleanup, the taxpayer may apply to the Department of Revenue for the credit equal to either 25% or 50% of the cost.

The cleanup must begin on or before August 5, 2023.

The costs of the cleanup must:

• Be contracted before January 1, 2024
• Equal or exceed 15% of the assessed value of the property before the beginning of the cleanup

Properties must be:

• Owned or leased for business purposes
• Reported to the DEP
• Cleaned up to the DEP’s standard
• Located in an economically distressed area identified by the DEP

The maximum amount of the BTC may not:

• Reduce the corporate excise due below $456
• Exceed 50% of its corporate excise or personal income tax

Any unused credits may be:

• Carried forward for the next 5 tax years, or
• Transferred

If a credit recipient doesn't maintain the property in compliance with standards set out by the BTC, the credit may be recaptured.

For more information, details on how amounts are calculated, and important definitions, please see:

• 830 CMR 63.38Q.1: Massachusetts Brownfields Tax Credit (PROPOSED REGULATION)

• Massachusetts General Laws Chapter 62, Section 6(j) (Personal income)

• Massachusetts General Laws Chapter 63, Section 38Q (Corporate excise)

• Massachusetts General Laws Chapter 21E, Section 2

• 310 Code of Massachusetts Regulations 40