Various states have enacted the Brownfields Tax Incentive law to incentivize taxpayers to invest in environmental cleanups. In many states, the Brownfields tax credits are transferable, and therefore may be sold to another taxpayer for cash.
The federal Brownfields Tax Incentive was passed as part of the Taxpayer Relief Act of 1997 (Public Law 105-34), and codified through Section 198(a) of the Internal Revenue Code. The incentive allows a taxpayer to fully deduct the costs of environmental cleanups in the year the costs were incurred rather than spreading them over a period of years. The purpose of both the state and federal measure is to encourage cleanup and redevelopment of brownfield sites.
How Tax Credits International can help:
We have long-standing relationships with large multi-state taxpayers that will pay top dollar for your credits. Whether you have $1 million or $40 million to place, TCI will quickly and efficiently monetize your credits.