Schedule Bc - Brownfields Credit - 2011 (Page 2 of 2) in pdf

Schedule BC Instructions

General Information

Line 4. Enter the date the Response Action Outcome Statement or

Remedy Operation Status Submittal was filed with DEP.

What Is the Brownfields Credit?

The Brownfields Credit (BC) is a tax credit designed to encourage

Line 5. Enter .25 if limited use results or .5 if unlimited use results.

private sector investment in the cleanup of contaminated sites in

If you are an S corporation shareholder, you will be notified by the S

economically depressed areas. The Brownfields Act of 1998 ends

corporation of the amount to enter in line 8. If you are a general or

liability for innocent owners and operators once they meet DEP’s

limited partner you will be notified by the partnership of the amount

cleanup standards for oil and hazardous material releases. See TIRs

to enter in line 8. You must still complete lines 1 through 4.

99-13, 00-9, 06-16 and 10-15 for further information.

Line 6. Enter here an accurate description of the qualifying property.

What Is an Eligible Site?

Also list the date of acquisition, assessed value of property prior to

To qualify for this credit, a site must be located in an “Economically

cleanup, and cost of cleanup.

Distressed Area.” A list of economically distressed areas can be

Line 7. This is the total cost of the cleanup.

obtained from the Massachusetts Office of Business Development,

1 Ashburton Place, Boston, MA 02108, or telephone (617) 778-3670,

Line 8. Multiply line 7 by 25% or 50%, whichever applies. This equals

or toll-free outside of Massachusetts: 1-877-BIZTEAM.

the current year BC.

Who Is Eligible to Take the BC?

Line 9. Enter the total Brownfields Credits carried over from prior

The credit is available to all businesses regardless of whether the

years. Credits may not be carried over to a year when the taxpayer

business is a sole proprietorship, partnership, corporate trust or cor-

has ceased to maintain the remedy operational status or permanent

poration. The taxpayer must be an owner or operator who did not

solution for which the credit was granted.

own or operate the site at the time of the contamination and did not

Line 10. Combine lines 8 and 9. This is the total credit available for

contribute to the contamination at the site. The site must be used for

use. Taxpayers must calculate the maximum allowable credit on lines

a business purpose. The taxpayer must complete the cleanup and

11 through 16.

submit a Response Action Outcome Statement or Remedy Operation

Status Submittal document prior to claiming the credit.

Line 11. Enter on line 11 your total tax for the year from Form 1, line

26; Form 1-NR/PY, line 32; Form 2, line 41; Form 355, line 6; Form

What Is the Allowable Tax Credit?

355S, line 9; Form 355U, Schedule U-ST, line 37. All other taxpayers

A credit of 25% of the cleanup costs is allowed for a cleanup that

subject to MGL Ch. 63 must enter the amount from the appropriate

achieves and maintains a permanent solution or remedy operation

line on their return.

status that results in limited use of the property. A credit of 50% of

Line 12. Taxpayers filing Form 1, Form 1-NR/PY or Form 2, add the

the cleanup costs is allowed for a cleanup that achieves and main-

Limited Income Credit, Credit for Income Taxes Paid to Other Jurisdic-

tains a permanent solution or remedy operation status that makes

the site safe for unrestricted use.

tions, Lead Paint Credit, Septic Credit, Low-Income Housing Credit,

Historic Rehabilitation Credit, Medical Device Credit Solar and Wind

Are There Special Requirements to Obtain the

Energy, Economic Development Incentive Program Credit, Economic

Credit?

Opportunity Area Credit and Film Incentive Credit, if any. Enter the

Yes. Costs must be incurred between August 1, 1998 and January 1,

result in line 12. All other taxpayers enter “0.”

2014. Costs must be not less than than 15% of the assessed value of

Line 13. Subtract line 12 from line 11 and enter the result here. Do

the property prior to cleanup. The site must be reported to the DEP.

not enter less than “0.”

Are There Limitations to the Credit?

Line 14. Enter 50% of line 13.

Yes. Taxpayers subject to tax under MGL Ch. 62 (sole proprietor-

Line 15. Enter the amount from line 10 and prior years unused BC.

ships, trusts and partnerships) are allowed to use the credit to offset

up to 50% of their tax due. Corporations may offset up to 50% of the

Line 16. For taxpayers filing Form 1, Form 1-NR/PY or Form 2, if line

excise due with the credit. Corporations cannot use the credit to lower

14 is greater than or equal to line 15, enter line 15 here. If line 14 is

their excise below the minimum tax.

less than line 15, enter line 14 here. Corporations filing Form 355U

and eligible to share the credit with other members of the combined

May Excess Credits be Carried Over From

group may exceed the amount on line 13 if the additional credits will

Year to Year?

be shared. See Form 355U instructions.

Yes. Taxpayers subject to tax under MGL Ch. 62 may carryover un-

Enter the amount from line 16 on Form 1, Schedule Z; Form 1-NR/PY,

used credits for five years. Taxpayers subject to tax under MGL Ch.

Schedule Z; Form 2, line 45. Taxpayers filing Form 355U, enter the

63 may carry over for five years any credits not used due to the 50%

amount from line 15 on Schedule U-IC, line 7. All other taxpayers

or minimum excise limitation.

subject to MGL Ch. 63 enter the amount from line 16 on the appropri-

Line Instructions

ate schedule or line item of their return.

Line 1. Check the type of business for which the property is being

Line 17. Taxpayers with more credits available (line 10) than credits

used.

used (line 16) may be eligible to carry over the unused credits for up

Line 2. Enter the type of return that you file. Enclose a copy of this

to 5 years. Taxpayers with credits eligible for carryover to 2012, com-

schedule with your return.

plete lines 17 and 18.

Line 3. The location of the qualified project should be entered here.

Schedule Bc - Brownfields Credit - 2011 Page 2

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