The Environmental Remediation (Brownfield) Tax Credits offer a win-win for Colorado property owners
Redevelopment projects with environmental issues that once were unprofitable now are becoming a reality thanks to a generous environmental remediation tax credit of up to $525,000. By participating in the Voluntary Clean Up Plan program, property owners can earn between 30-40% of their cleanup costs in a transferable tax credit.
Started in 2014, these credits are really hitting their stride in 2015 with six credits issued before the end of the year. What’s unique about these credits is that local governments are also qualified to earn them allowing cities and counties to essentially reduce their costs for cleaning up government owned properties in Colorado. Read the tax credit requirements here.
Qualifying costs are eligible for a 40% credit on the first $750,000 and 30% credit on the amount between $750,000 and $1,500,000 with the maximum credit available of $525,000. Jon Steeler, attorney with Ryley, Carlock & Applewhite states, “Adding transferability to these credits helps non-profits, governments and entities in the start up phase to receive a benefit for cleaning up their properties. The earlier tax credit program that was not transferable gave no benefit to property owners who didn’t have a large tax liability.”
Projects must enroll in CDPHE’s Voluntary Cleanup Program in order to be eligible for the tax credit. The application process is outlined in CDPHE’s Voluntary Cleanup Roadmap, available on the Department’s website. Tax Credit Connection also has a checklist that will help you in planning your project and applying for tax credits. For more information regarding the voluntary cleanup and redevelopment program, follow this link. For more information regarding the brownfield state incentives program, follow this link.
Step by Step Guide for Creating Environmental Remediation Tax Credits
Tax Credit Connection has worked in conjunction with the Colorado Department of Public Health and Environment to create a checklist to guide you through the process of earning and claiming Brownfield income tax credits. Call or email us today.
Tax Credit Connection will help you turn your Brownfield Credits into Cash
You can earn 85% of the value of your tax credits by selling them to a qualified buyer through Tax Credit Connection. That means if you sell $100,000 worth of tax credits you will get a check for $85,000. What better way to get your project off the ground than selling whatever tax credits you don’t need for your tax bill!