Cherrytree Group is a consultant, broker, and syndicator that has grown into an arbitrage and financial services company. We have extensive experience in dealing with all aspects of the Massachusetts Brownfields Tax Credit, The 1063 Treasury Grant Program, Historical Rehabilitation, and Solar Renewable Energy Credits and we are a recognized expert in these fields.
Cherrytree Group has developed a streamlined procedure for obtaining Massachusetts Brownfields Tax Credits for their clients. We are able to sift through and collect the remediation data and documents, analyze the costs to determine which are eligible for the credit, and prepare and file the application with the Massachusetts Department of Revenue. We also have a depth of knowledge of the Massachusetts Brownfields Tax Credit Statute and Ch. 21E of the Massachusetts General Laws to be able to take and defend a position with the Massachusetts Department of Revenue on the eligibility of particular remediation expenses.
We can perform all 3 functions for a client 1. securing tax credits, 2.brokering the sale of the tax credits, and 3. closing on a tax credit purchase, moreover the costs to the client are significantly less than if separate professionals were engaged for each service. Our system is efficient and detailed, and our team includes accounting professionals to work on analyzing the eligible costs, legal professionals to close on the tax credit purchase, analysts to construct a report of the eligible costs, and developers to assist with, and advise on cost and development issues. Additionally, we have relationships with service partners throughout Massachusetts with whom we collaborate in order to expedite the Brownfields Tax Credit process. Specifically, we work with an environmental testing laboratory, and we have subcontracted with an engineering firm that provides licensed site professional (LSP) services to environmental remediation projects throughout New England.
About the Massachusetts Brownfields Tax Credit
Massachusetts General Laws Sec. 21E forces developers or owners of land that has environmental contamination to clean up that site whether or not the owner/operator caused the contamination. This is a risky, time consuming, and very expensive process. The law makes the buyer/current owner responsible for the cleanup costs, but the Brownfield tax credit statute does allow that if the issues were caused by a prior owner, the owner/operator is absolved of liability, and gives them a tax credit of up to 50% of the eligible costs incurred to clean up the site. The owner can then monetize the Massachusetts Brownsfields Tax Credits by transfer to a buyer, and we can assist in brokering this sale/transfer.
Briefly, the procedure is as follows: The Massachusetts Brownfields Tax Credit (BTC) is available to certain taxpayers in Economically Distressed Areas. The BTC Program acts as a dollar-for-dollar credit against a taxpayer’s tax liability to Massachusetts. Because Massachusetts Brownsfields Tax Credits are certificated, they are attractive to buyers and transfer is easy. We assist clients in applying for and securing the tax credits, as well as in transferring the credits. The Massachusetts Brownfields Tax Credit, or a part of it, may be claimed or used to offset up to 50% of a taxpayer's dollar-dollar tax obligation to Massachusetts for 5 years.
Cherrytree Group, LLC acts as a consultant and a syndicator, applying for and obtaining the Massachusetts Brownfield Tax Credit for clients, as well as providing distribution capacity for the sale of the Massachusetts Brownfields Tax Credit.
If you have any questions about commercial real estate, renewable energy development, or tax credit transactions; please feels free to contact Warren directly at (781) 325-8485 or warren@cherrytree-group.com.