Taxpayers are allowed to claim a credit for amounts expended to remediate contaminated property owned or leased for business purposes and located within an economically distressed area.
The Brownfields credit may be claimed by a business corporation that commences and diligently pursues an environmental response action and achieves and maintains a permanent solution or remedy operation status in compliance with chapter 21E. Taxpayers may sell, transfer, or assign the credit Under prior law, net response and removal costs incurred by a taxpayer between August 1, 1998 and January 1 2019, were eligible for the credit provided that the environmental response action commenced before August 5, 2018. Chapter 99 of the Acts of 2018 changed the date by which the environmental response action must be commenced to August 5, 2023, and the time for incurring eligible costs that qualify for the credit to January 1, 2024.
The credit may be carried forward for up to 5 years. The amount of the credit varies according to the extent of the environmental remedy. If the taxpayer's permanent solution or remedy operation status includes an activity and use limitation, then the amount of the credit is 25% of the net response and removal costs incurred by the taxpayer. However, if there is no activity and use limitation, then the amount of the credit is 50% of the net response and removal costs.
Origin: M.G.L. c. 63, §38Q.
Corporate Excise Tax
Credits Against Tax
2.608
Brownfields Credit
Taxpayers are allowed to claim a credit for amounts expended to remediate contaminated property owned or leased for business purposes and located within an economically distressed area. <BR><BR>The Brownfields credit may be claimed by a business corporation that commences and diligently pursues an environmental response action and achieves and maintains a permanent solution or remedy operation status in compliance with <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleII/Chapter21E" target="_blank">chapter 21E</a>. Taxpayers may sell, transfer, or assign the credit Under prior law, net response and removal costs incurred by a taxpayer between August 1, 1998 and January 1 2019, were eligible for the credit provided that the environmental response action commenced before August 5, 2018. <a href="https://malegislature.gov/Laws/SessionLaws/Acts/2018/Chapter99" target="_blank">Chapter 99 of the Acts of 2018</a> changed the date by which the environmental response action must be commenced to August 5, 2023, and the time for incurring eligible costs that qualify for the credit to January 1, 2024. <BR><BR>The credit may be carried forward for up to 5 years. The amount of the credit varies according to the extent of the environmental remedy. If the taxpayer's permanent solution or remedy operation status includes an activity and use limitation, then the amount of the credit is 25% of the net response and removal costs incurred by the taxpayer. However, if there is no activity and use limitation, then the amount of the credit is 50% of the net response and removal costs.
M.G.L. <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter63/Section38q" target="_blank">c. 63, §38Q</a>.
23.8
27.2
31.5
33.0
33.3
