We secure the largest possible tax credits for developers and guide them through the financing process. With our supportive infrastructure and extensive connections, we help our clients break through bottlenecks and keep projects moving forward.
What we will do for you:
· Maximize the amount of credits obtained
· Streamline the application and approval process
· Provide a user-friendly documentation process
· Secure competitive pricing for monetization of tax credits
· Provide expert guidance available for every aspect of the process
· Maintain awareness of the intricacies of the process that can make a substantial difference in both the total amount awarded and the ease and timing of the entire process
· Provide our expertise to clients and potential clients, adding value to projects, proposals and relationships
· We work on a contingent fee basis and are paid when the credits are approved and sold
In 2009, Dorfman Capital formed a joint venture with New England Economic Development (NEED) – Economic Development Incentives, Inc. (EDI) – to specifically serve real estate owners who develop brownfield sites and are eligible for Brownfields Tax Credits. EDI has qualified more than 125 projects for Brownfields Tax Credits representing over $210 million of tax credits originated and sold.
Visit EDI for more information about MA Brownfields tax credits: www.mabrownfieldstaxcredit.com
Brownfields are sites that have been contaminated by former industrial or commercial use. They are often in or adjacent to urban areas, and their redevelopment offers extraordinary opportunity to developers and communities alike.
Brownfields can provide developers with large plots in prime locations, enabling them to take advantage of greater proximity to the twin engines of urban economies, namely density and diversity. Communities also profit from brownfields redevelopment, as it activates dead space and reinvigorates entire neighborhoods.
· The MA legislature passed the Brownfields Act: Chapter 206 of the Acts of 1998, which was amended in 2006, 2010, 2013 and again in 2018, offering liability relief and a financial incentive to clean up contaminated ground (21E) sites.
· Through the Brownfields Act, the Massachusetts Department of Revenue offers eligible businesses and nonprofits a tax credit for the costs incurred to remediate contaminated property owned or leased for business purposes and located in an Economically Distressed Area (EDA).
· Brownfields are sites that have been contaminated by former industrial or commercial use and have been listed as such with the Massachusetts Department of Environmental Protection (DEP).
· Up to 50% of the qualified clean-up costs per site can be refunded through MA tax credits, 25% if an AUL is used.
· Unlike a tax deduction, which reduces the income an entity pays taxes on, a tax credit is a dollar-for-dollar reduction of the tax liability.
· Both for profit and non-profit entities are eligible to apply to receive these credits.
· These tax credits may be sold, transferred or assigned to other entities.
· The applicant may choose to monetize (sell) any portion of the credits awarded – all, some or none.
· Under certain circumstances, tax credits may be earned retroactively (5 years) even if the property has already been sold.
· The property is owned or leased by the taxpayer for business purposes.
· The property has been reported to the Massachusetts Department of Environmental Protection.
· The property is located in an Economically Distressed Area (EDA). Economic Target Areas (ETA) automatically qualify. A census tract or entire community is considered an EDA if it has been designated an ETA. About 75 % of the cities and towns in Massachusetts qualify.
· The site was cleaned up under the guidance of a Massachusetts Licensed Site Professional (LSP).
· The party conducting the investigation/remediation did not cause or contribute to the contamination, i.e. they were not responsible for the environmental issue to begin with.
· The environmental cleanup costs must exceed 15% of the assessed value of the property prior to the response action on or before remediation.
· To qualify, the taxpayer must “commence and diligently pursue” the relevant environmental response action(s) on or before August 5, 2023. Also, the net response and removal costs must be incurred prior to January 1, 2024. Eligible costs are includable from August of 1998.
· The amount of any State grants (not loans) must be deducted from the expense base for which the credit is available.
· If an Activity and Use Limitation (AUL) is used, the credit amount is 25% of the net response and remediation qualified costs. If an AUL is not used, the credit amount is 50% of the net response and remediation costs.
The maximum amount of credit that an investor may take in any taxable year may not exceed 50% of their tax liability for that taxable year, with the exception of an insurance company, who may take an amount up to 100% of their tax liability for that taxable year. The balance of tax credits may be carried forward for up to five years.
The Credit is available to the following taxpayers: Corporate trusts; corporations; corporations included in a combined return; nonprofit organizations; partnerships; S corporations; sole proprietors; trusts; limited liability companies; individuals.
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