Brownfields Tax Credit (BTC)

Learn about the credit for cleaning up contaminated property.

Overview

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.

Eligibility

The cleanup must begin on or before August 5, 2018.

The costs of the cleanup must:

  • Be contracted before January 1, 2019
  • 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.

Minimum Excise, Carryover, Transfer, and Recapture

The maximum amount of the BTC may not:

  • Reduce the corporate excise due below $456, or
  • Exceed 50% of its corporate excise.

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:

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