The Brownfields Tax Credit program, a key aspect of development incentive packages in many U.S jurisdictions, recently underwent significant changes. Governor Healey approved the extension of the program for five more years until January 1, 2029, as part of the FY 2024 budget legislation. Initially, the credit was set to end in 2023, a piece of news that will certainly pique the interest of professionals in the legal and corporate sphere.
As per the extension, redevelopment practitioners will now have an additional five years to complete response actions and potentially earn a Brownfields Tax Credit reaching up to 50% of eligible costs. This news comes as a considerable relief, particularly as environmental cleanup costs are usually sizeable and can impede the progress of redevelopment projects in challenged areas.
However, worth noting is the complexity of the Department of Revenue’s regulations and procedures for eligibility for the tax credit. These procedures can be a deterrent for some, given the potential high cost of meeting all requirements, yet the overall extension of the program has been well-received by many in the redevelopment community.
For more details about the Brownfields Tax Credit, please refer to this article by Burns & Levinson LLP.