Some Questions

Questions:

Assume an out of state developer has generated income to utilize the tax credit.

If the developer does not file for income tax in the state that the credit has been issued, how will the credit be utilized?

THEY WILL NOT!  

Due to new accounting standards and shareholder liabilities, large institutions and REITS that once dominated the Brownfield industry will no longer incur the risks of purchasing and developing Brownfields.

How will the large institutions and REITS obtain Brownfield Tax Credits?

THEY CANNOT! 

How can entities that cannot incur the risks that earn the tax credits, obtain the non-utilized tax credits from the entities that can?

The Solution

Brownfield Equity Co. is virtually the first company that specializes in monetizing the value of unusable Brownfield Tax Credits for entities "that have them", while at the same time, provide the tax savings to those "who need them."


Brownfield Tax Credits
The Credit and its Value

Brownfield Tax Credits (BTC’s) are fully transferable state tax credits that will allow the holder to offset state income taxes on a dollar for dollar basis, applicable only within the state from which they are issued.

Some Facts

BTC’s are in the hands of developers that have a desperate time sensitive requirement  to monetize the value of their credits before completion of their project, or, they simply forfeit them. 

Entities that can use the credits however, typically do not have the mechanism to acquire them, nor do they have the ability to earn them.

 

Real Solutions

  • Funds Are immediately available
  • There are nomonthly interest payments
  • Funds are paid back from the Tax Credits
  • We work seamlessly with your existing team

 

 

 

 

 

 

 

What We Know

Brownfield Tax Credits (BTC’s) are fully transferable state tax credits that will allow an entity to offset state income taxes on a dollar for dollar basis.

If your brownfield development project is located in a state authorized to issue BTC's, the earned tax credits can be monetized and or transferred to any entity that wants to offset their taxable income.

Some Facts

A significant dollar amount of BTC's are in the hands of developers that have a desperate time sensitive requirement  to monetize the value of their credits before completion of their project, or, they will simply forfeit them. 

Entities that can utilize the credits typically do not have the mechanism to acquire them, nor do they possess the means to earn them.

Who has them?

BTC’s were created by state agencies to incentivize the successful remediation of an environmentally impaired property (Brownfield).  A growing number of developers are now purchasing Brownfield’s due to deflated purchase prices, as well as the enormous upside potential Brownfield sites offer, without considering the costs and liabilities associated with remediating the property. 

For a number of reasons, these developers often need to, but cannot monetize the credits before the successful remediation is completed.  These reasons may include:

 

  • The developer does not report income in the same state that the credit is generated.
  • The developer requires additional capital to complete the entitlement process.
  • The project needs additional equity to secure senior financing.
  • The Tax Credit has not been perceived as collateral.

 Regulators that created the tax credit were aware these problems might exist, and therefore designed the credits to be “transferable” from the onset.

Who Needs Them?

Every taxpaying state has large companies and high net worth individuals that carry tremendous state tax liabilities, which make these tax credits an extremely valuable commodity to them.

Unfortunately, due to potential risks and liabilities, these high net worth entities can no longer purchase any real estate site that may not qualify for development, such as a Brownfield. 

Seamless Integration
BEC will work with your existing team or can manage the entire remediation start to finish .
Documentation
Our review process is fast and efficient. As part of our underwriting standard requirements, you will need to produce your: Remedial Action Plan, Phase Reports, Brownfield Contracts, and Tax Credit forms.
Funding
Once we verify your information, we fund. Funding is available for almost any size project, Large or small!