Brownfields Tax Credits
Buying and Selling Tax Credits
Cooperstown Environmental LLC provides brokerage and syndication services related to Massachusetts Brownfields Tax Credits. We also act as direct buyers of Brownfields Tax Credits. We have performed hundreds of transfers – so please contact us if you have credits that you would like to monetize.
Why are credits sold?
After all, a taxpayer can use the credits as a direct, dollar-for-dollar offset against state taxes. If you own Massachusetts Brownfields Tax Credits in your name, and have a state tax liability, your best approach probably is to use them against your state income taxes, especially considering that the credits could be good for up to six tax years, depending on the certificate. Many or most Brownfields Tax Credit recipients, however, choose to sell. Typical scenarios for tax credit owners to sell include:
- The owner is a tax-exempt organization.
- The owner is located out-of-state and does not pay Massachusetts income taxes.
- The owner does not have a sufficient tax appetite to take full advantage of the credits (the credits that can be used in any year are limited).
- The owner would prefer to monetize the credits and use the proceeds for other purposes.
- Time value of money – utilizing the credits over time reduces the present value.
How are credits sold?
Fortunately, a 2006 amendment to the program made the Brownfields Tax Credits fully transferable, allowing owners to sell their credits. Cooperstown Environmental routinely purchases credits or finds a third party investor for larger transactions. The transfer process is controlled and administered by the state Department of Revenue (DOR). Cooperstown Environmental has processed hundreds of such transfers and is ready and able to complete the applications and related paperwork. We have optimized the transfer process to ensure it is completed in a timely and accurate manner – with a minimum of drama. If you have credits to sell, please contact Jim Curtis to discuss.
We have the ability to quickly close on a purchase with a minimum of hassle and bureaucracy.