Brownfields Tax Credit

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MDBIZ News Blog Brownfields Revitalization Incentive Program (BRIP)

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The Brownfields Revitalization Incentive Program (BRIP) is intended to promote economic development and environmental improvement, especially in distressed urban areas, by identifying and redeploying underutilized properties. The EPA defines a brownfield as “a property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant.”

Property tax abatement is available for qualifying properties in jurisdictions that have elected to participate in the program. Commerce administers the BRIP property tax credit applications on behalf of these jurisdictions. BENEFIT

For each of the five taxable years after a site cleanup or corrective action plan, a property may qualify for a real property tax credit of between 50% to 70% of the property tax attributable to the increase in the assessed value of the site. In an Enterprise Zone, the tax credit may last for up to 10 years. ELIGIBILITY

The site must be located in a jurisdiction that participates in the BRIP, and it must be owned or operated by an inculpable person.

In order to participate, the local jurisdiction must either approve property tax credits pursuant to State statute or maintain a list of priority brownfields sites. Participating Jurisdictions as of 12/31/2022: Counties, Allegany, Anne Arundel, Baltimore, Baltimore City, Cecil, Dorchester, Frederick, Howard, Montgomery, Prince George’s, Queen Anne’s, Somerset, and Worcester Municipalities, Colmar Manor, Cumberland, Frederick, Salisbury, and Taneytown LIMITATIONS

Only sites located in a participating jurisdiction can be considered for BRIP.

Combined with other real property tax credits, the tax credit may not exceed 100% of the tax on the increased value of the site.

The tax credit program provides that: The participating jurisdiction will provide a 50% credit on the property tax attributable to the increase of the site assessment, including improvements added within 5 years after the reassessment. At the option of the jurisdiction, an additional tax credit may be provided. The total additional tax credit may not exceed an additional 20% of the remaining property tax attributable to the increase of the site assessment. The tax credit is granted for a 5 year period. If located in a designated enterprise zone, the jurisdiction may extend the tax credit for up to an additional 5 years. APPLY

To request a letter from the Department establishing that a specific site is a Qualified Brownfield site for the benefit of the BRIP Tax Credit, the following items must be provided: A completed General Application and the BRIP addendum as it relates to the project. Copies of all of the following letters issued by the Maryland Department of Environment (MDE) evidencing: Acceptance of the property into the MDE’s Voluntary Cleanup Program (VCP), That the entity applying has Inculpable Person status, and A closure document (Certificate of Completion or No Further Requirements Determination (NFRD)) once remediation has been completed to the satisfaction of MDE. A copy of the building permit issued for the project by the jurisdiction.

Qualifying property owners will be issued a letter which can be taken to the local jurisdiction to apply for the tax credit. RESOURCES

Tax-Property Article § 9-229

Maryland Department of the Environment

Maryland Department of Planning CONTACT

For More information about the BRIP property tax credit and the General Application with the BRIP Addendum, contact:

Caroline Kimani, Tax Specialist

Maryland Department…

Topic areas: Circular Economy and Sustainability, Public Policy and Governance, Housing and Community Development.

Funding amount

This grant provides Varies in funding.

Deadline

Applications are accepted on a rolling basis; there is no single fixed deadline.

Who can apply

This opportunity is open to the following applicant types:

• Not specified by the program.

Eligibility

The program did not publish a separate eligibility statement. See the official opportunity page for the full eligibility criteria.

Agency

Brownfields Tax Credit is administered by Maryland Department of Commerce (MD Commerce), listed via Maryland Department of Commerce.