Financial Incentives for Brownfields

When considering Brownfield incentives for a project, PM is able to recognize that each project’s eligibility may be different.  This can depend on the redevelopment, the community’s Brownfield program, the funding gap, and local support.  It is important to have a redevelopment plan and an understanding of the expected eligible costs when discussing available incentives with a local municipality.  Once the local and state support is determined and available incentives are understood, then the application process can begin.

Tax Increment Financing (TIF) is one of the most commonly utilized tools in off-setting the costs of redeveloping a Brownfield property.  Increased tax revenue generated from Brownfield redevelopment creates the tax increment, which is reimbursed to the developer over a period of time until eligible costs are reimbursed.  TIF can be completed with local only taxes or combined to also capture state school taxes.  Eligible costs vary depending on the community.  The standard eligible costs include environmental due diligence and baseline environmental assessments, brownfield plan preparation, due care plan preparation and implementation, lead and asbestos surveys and abatement, response activities, demolition, site preparation, and infrastructure improvements.  TIF also provides opportunities for the community to build their Local Site Remediation Revolving Fund (LSRRF).

Local Brownfield Revolving Fund (LBRF) or Revolving Loan Fund (RLF) can be set up by a community through utilizing tax capture on TIF projects or awarded through an Environmental Protection Agency (EPA) Grant.  These funds allow communities to provide grants or flexible term loans for Brownfield redevelopment.  Eligible costs that are covered by a LBRF typically include the same costs covered by TIF, depending on the source of funding and the community.  Often, a LBRF can be combined with a TIF to assist in paying for costs upfront and loan reimbursement.

Tax Abatements are available to encourage the rehabilitation of obsolete, commercial, and industrial properties.  The type, amounts, and length of the tax abatement is dependent upon the property history and need for assistance.  Typically with tax abatements, there are two steps to obtain approval.  First, approval of a district and second, approval of a certificate.  It is important to note that in most cases, permits cannot be pulled until the district approval is established.

Economic Redevelopment Incentive Packaging

Brownfield Plans & Act 381 Work Plans

Tax Increment Financing

Tax Credits and Tax Abatements

Grant and Loan Programs