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Brownfields Tax Credits

Overview

In 1998, Massachusetts created the Brownfields Tax Credit program with two primary goals: to encourage economic redevelopment and promote the remediation of contaminated property. If you qualify, the credit allows you to recover as much as half of the money spent on qualifying expenses!

 

 

After years of success, Cooperstown Environmental has become synonymous with the Massachusetts Brownfields Tax Credit. As the acknowledged authority in the Brownfield Tax Credit, we’re the go-to choice to prepare your application and monetize your credits.

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Based on published data from MassDOR, our clients have received more than half of all approved credits since 2011. Our firm has submitted hundreds of successful applications and has been responsible for more than $100 million dollars in credits for our clients. Our clients include real estate developers, Fortune 500 companies, not-for-profit organizations, small businesses, individuals, real estate trusts, colleges and universities, commercial property owners including residential developments, family-owned businesses, and others.  

Our “special sauce” is our expertise in both engineering and tax credits; this sets us apart from all others. No other LSP firm has the depth of knowledge and experience in tax credits that we offer, while no accountants, lawyers, or tax credit practitioners generally cannot match our understanding of the Massachusetts Contingency Plan (MCP) regulations or construction processes that underly the tax credit program. Drawing on our expertise in both realms, we identify opportunities where others may not.  

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.

our services include:

CONSULTING APPLICATION COST REVIEW APPEALS BROKERING

Our Brownfields Tax Credit-related services span the full spectrum. We handle all the details, from start to finish, including pre-project consulting during project planning, consultation and eligibility analysis, application preparation and submittal, and assistance during reviews.

Should your application be denied or only partially approved, can appeal the denial through a specified process prior to going to court. Cooperstown has assisted dozens of clients through the appeal process, with an excellent record of success. We can assist you with an appeal regardless of who prepared the original application.

Once awarded credits, Cooperstown can quickly monetize the credits. We have the ability to quickly close on a purchase with minimum hassle and bureaucracy. 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.

Frequently asked questions

Two reasons: because jobs and housing are created when property is restored to productive use, and our citizens’ health is protected when contaminated sites are cleaned up.

The primary intent of the Brownfields Tax Credit is to incentivize real estate development of contaminated properties by offsetting costs, and “tip the scales” to make otherwise marginal projects go forward. The Massachusetts Brownfields Act was passed in 1998 to encourage and provide an incentive for the cleanup of contaminated sites, sometimes known as Brownfield sites. (EPA defines Brownfields as property where expansion, redevelopment, or reuse is complicated by real or perceived environmental contamination.) The programs put in place by the Brownfields Act offer both economic incentives and liability protections to restore properties to productive use, which results in both economic development and a cleaner environment for our citizens.

In Massachusetts, the hazardous waste law generically known as “Chapter 21E” makes the owner of a contaminated property strictly liable, meaning it applies even to an “innocent” owner who purchases a property that has already been contaminated. In this way, the 21E law is a disincentive to purchase such a property, because the new owner has a potentially unlimited financial liability.

 This explains why many such properties (“Brownfields”) are underutilized and tough to sell – because of the cost, liability, and stigma. The 1998 Brownfields Act contains both liability protections and financial incentives. The Brownfields Tax Credit program has proven to be remarkably successful at meeting these objectives and rescuing many of these problem sites. Because of this program, many hundreds of properties have been cleaned up and put back into productive use. 

 

Program changes in 2006 greatly enhanced this tax credit program. By allowing the credits to be transferred or sold, now even not-for-profit organizations or taxpayers with no or limited tax liability can benefit from this program by selling their credits, resulting in cash. 

The credit is available only to “Eligible Persons”– essentially, innocent parties who did not cause the contamination or even own the land when the contamination occurred. Real estate developers are primary targets for the credit. Many others qualify as well depending on the facts and circumstances. Eligibility for the Massachusetts Brownfields Tax Credit program requires that an applicant meet the following eligibility criteria:

  • The site property must be used for commercial purposes (owner-occupied residential property is not eligible).
  • The property must be located in a Census Tract, city, or town designated as an Economically Distressed Area (EDA) or be a former MGP site.
  • The applicant must be the owner, operator, or tenant of the property, or have been at the time of the spending.
  • The project was reported to the Department of Environmental Protection (DEP), and generally performed under the direction of a Licensed Site Professional (LSP).
  • Eligible spending must exceed a minimum threshold based on the property value.
  • The project was completed no more than five years ago.

 

Typical tax credit recipients include commercial property owners; small and large businesses; developers; not-for-profit organizations such as charities and community development corporations (CDCs); and colleges and universities. Agencies of the municipal, state, or federal government are not eligible. Parties may qualify for investigating and/or remediating contamination from a prior use of the site, including the result of historic fill or past practices, whether this condition was known at the time of purchase or discovered later.

If you qualify for this program, you deserve to get your full refund. We will work with you to identify all the costs that may be eligible for recovery. With our experience, we can ensure that no costs will be overlooked.

MassDOR has issued guidance about what costs qualify, but many gray areas remain. In general, costs may qualify if incurred to assess, contain, remove, or otherwise respond to the contamination. These costs typically include Licensed Site Professional (LSP) services, engineering costs, contractor expenses related to the cleanup, laboratory analyses and testing, soil transport and disposal, and others. Details matter, however, and the nuances can make a significant financial difference.

The credit application and review process seem daunting to many, and there are many opportunities to miss recovering costs. Having been involved in the Massachusetts Brownfields Tax Credit program since the very early days, and having worked on hundreds of applications, our experience is unmatched. We provide value by applying our experience and expertise to your project to maximize your chance of success and maximize the amount of the approved credit.

If you qualify for this program, you deserve to get your full refund. We will work with you to identify all the costs that may be eligible for recovery. With our experience, we can ensure that no costs will be overlooked.

 

MassDOR has issued guidance about what costs qualify, but many gray areas remain. In general, costs may qualify if incurred to assess, contain, remove, or otherwise respond to the contamination. These costs typically include Licensed Site Professional (LSP) services, engineering costs, contractor expenses related to the cleanup, laboratory analyses and testing, soil transport and disposal, and others. Details matter, however, and the nuances can make a significant financial difference.

 

The credit application and review process seem daunting to many, and there are many opportunities to miss recovering costs. Having been involved in the Massachusetts Brownfields Tax Credit program since the very early days, and having worked on hundreds of applications, our experience is unmatched. We provide value by applying our experience and expertise to your project to maximize your chance of success and maximize the amount of the approved credit.

Yes, the credits may be applied to your Massachusetts income tax liability or sold for cash.

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