Cherrytree Group Blog

Development Planning: Utilizing Incentives

[fa icon="calendar"] Nov 7, 2017 10:42:47 AM / by Melina Ambrosino

BOSTON –  Over 50 Massachusetts developers, architects, attorneys and tax professionals gathered at Gillette Stadium to listen as industry leaders discussed the field of tax credit acquisition and syndication for historic preservation, renewable energy creation or remediation of contaminated land.

 

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Brian Early of The Kraft Group, who oversees the company’s developments including Gillette Stadium and surrounding commercial properties, described how the use of available tax credits and utility incentives made it possible for the Foxborough complex to attain a 26% savings in electricity consumption and 43% drop in natural gas consumption. “I am continually fascinated at the array of possibilities of tax credit savings for development,” he said.

Developer Lawrence Curtis of WinnDevelopment discussed how public policy initiatives across state and federal government have turned scores of good ideas into reality. For many municipalities, he noted, the general economic conditions are such that anticipated future rent income cannot make revitalization feasible without the use of credits, which have been known to lower a construction project’s budget by as much as 40%.. Curtis also discussed the state’s allocation strategy for the historic preservation credit, and how developers can position themselves to obtain maximum value for their projects.

 Warren Kirshenbaum of Cherrytree Group described the different types of tax credits which can be gained for historic preservation, low income housing, creation of renewable energy and clean-up of contaminated lands. As developers are not always in a position to take advantage of these credits,  Kirshenbaum outlined how partnerships, or syndications, can be created between developers and investors so that the tax credits can be taken advantage of by the investor while the developer reduces the costs of the project. Many of these tax credits can be carried forward for as many as 20 years,” he said.

Robert Atwood of Environmental Strategies & Management discussed the proper procedures developers should take to receive tax credits for cleaning contaminated lands as part of a development project. Atwood said eligible lands for what are known as Brownfield tax credits are not only those which are distinctly toxic; he  noted that any project which includes remediation of most land in the Back Bay section of Boston is considered eligible for tax credits.

Melina Ambrosino of Cherrytree Group recounted the 20-year history of tax credits for clean-up of contaminated lands, known as Brownfields tax credits, and pointed out that many credits can be gained retroactively for projects that have been undertaken since 1998. The program is due to end at the end of 2018 but lobbying by the industry has shown promise for an extension of the program. "The Brownfields Tax Credit is a great incentive to help developers clean-up heavily contaminated land in Massachusetts. This program has helped many developers, no matter how big or small, achieve their development goals. " she said.

For more information about the various tax credit incentives, contact our office today!

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Topics: Brownfields Tax Credits, Federal Tax Credit, WinnDevelopment, The Kraft Group, Development Planning: Utilizing Incentives, Event, Gillette Stadium, melina ambrosino, warren kirshenbaum, larry curtis, brian earley, robert atwood

Melina Ambrosino

Written by Melina Ambrosino

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