What is the Missouri Brownfield Tax Credits program?
The Missouri Brownfield Tax Credits program was created to be a financial incentive for redeveloping both commercial and industrial sites that contain hazardous environmental contaminates and that have been underutilized or abandoned for the past three years or more. Typical hazardous contaminates include: asbestos containing materials (ACMs), lead based paint (LBP), underground storage tanks (USTs), and more.
- The Department of Economic Development (DED) issues tax credits of up to 100% of the remediation cost for the project peroperty.
- DED issues 75% of the credits upon adequate proof of payment of the costs; the remaining 25% will not be given until a clean letter has been issued by the Department of Natural Resources (DNR).
- The tax credit may also include up to 100% of the costs of demolition that are not directly part of the remediation activities, provided that the demolition is on the property where the voluntary remediation activities are occurring, the demolition is necessary to accomplish the planned use of the facility where the remediation activities are occurring, and the demolition is part of a redevelopment plan approved by the municipal or county government and the department of economic development. The demolition may occur on an adjacent property if the project is located in a municipality which has a population less than twenty thousand and the above conditions are otherwise met. The adjacent property shall independently qualify as abandoned or underutilized. The amount of the credit available for demolition not associated with remediation cannot exceed the total amount of credits approved for remediation including demolition required for remediation.
This program can easily offset 10%-20% of the total redevelopment budget depending on the level of demolition and remediation required.
How L&A Can Assist Your Brownfield Project
We have decades of experience with helping our clients apply and successfully receive Brownfield Tax Credits. We offer all the services needed to meet the complex program requirements. Our “one stop shop” approach to your Brownfield Tax Credit project will save you an enormous amount of time and money. The following are the services we provide that are needed for a successful Brownfield Tax Credit Project:
- Phase 1 ESA
- Phase 2 ESA
- Missouri Dept. of Natural Resources Voluntary Cleanup Program Application
- Develop Work Plan to address environmental issues
- Develop Abatement and Demo Bid Document and Solicit Competitive Bids
- Conduct Bidder Walk though and Evaluate Bids
- Develop Economic Models to the State that demonstrate need and economic impact
- Assemble and complete Brownfield Tax Credits Application
The Brownfield Tax Credits program is a tremendous financial tool but can be complex and extremely challenging if you are unfamiliar with the program requirements. Let us assist you through this process. Contact us to learn more – call us at (314) 878-4021
There are many requirements that Lafser can help guide you through in order to be eligible for Missouri Brownfield Tax Credits. Below is a simplified list.
- The applicant can’t be a party who purposely or negligently caused the release or potential release of hazardous substances or contaminants at the project.
- If the property is not owned by a public entity, the city or county must endorse the project.
- The project must be accepted into the “Voluntary Cleanup Program” of the MO Department of Natural Resources.
- The project must be projected by DED to result in the creation of at least ten new jobs or the retention of 25 jobs by a private commercial operation.
DED will also require a number of other things which Lafser can assist you with. These will be things like economic modeling of the project, certain number of bids for each type of work being done, and more. Please contact us to learn more about the Missouri Brownfield program.