BCTA: Brownfields Credit Transfer Application (2024)
Massachusetts · Massachusetts DOR · Used for tax years 2024
Massachusetts Form BCTA is an application to transfer, sell, or assign a Brownfields tax credit. It reports the unused credit eligible for transfer, the amount being transferred, the purchaser’s payment, and information about the transferor, purchaser, and credit certificate.
Who files this form
A taxpayer or nonprofit organization intending to transfer, sell, or assign a Brownfields credit must submit information to DOR describing the credit amount eligible for transfer and how it should be allocated. The person or organization transferring the credit is called the transferor.
Partnerships and S corporations transferring credits to members must complete a separate application for each member showing that member’s apportioned credit.
When it's due
The 2024 form lists these credit eligibility deadlines:
- August 5, 2028: The taxpayer must commence and diligently pursue the relevant environmental response actions on or before this date.
- January 1, 2029: Net response and removal costs must be incurred before this date.
These are eligibility deadlines stated in the tax year 2024 form, not deadlines for mailing the transfer application. The text does not give an application filing deadline.
What you'll need
Prepare the following:
- A completed Brownfields Credit Transfer Application, including the required signatures.
- A copy of Form BCC, which must be enclosed.
- The original certificate issued by DOR.
- The DOR certificate number and expiration date.
- Transferor and purchaser names, addresses, and identification numbers, plus the transferor’s contact information and entity type.
- The credit amount eligible for transfer, the amount being transferred, and the amount paid by the purchaser.
The application includes a declaration, a transferor acknowledgment, and a notary section.
How to file
- Enter the tax period, transferor information, purchaser information, and DOR certificate details.
- Enter the total credit being transferred in Section 1 and the amount paid by the purchaser in Section 2. On line 1, enter the unused amount from line 1 of Form BCC that is eligible for transfer.
- Complete the required signature and notary fields. The transferor must sign the seller acknowledgment, except for the member transfers described below.
- Enclose a copy of Form BCC and the original DOR certificate.
- Mail the completed application to:
Massachusetts Department of Revenue
Audit Division
200 Arlington Street, Room 4300
Chelsea, MA 02150
Attn. Credit Unit
For partnerships and S corporations transferring credits to members, complete a separate application for each member’s apportioned credit. The seller acknowledgment is not required for these transfers; only the Declaration must be signed by the General Member.
Common mistakes
- Leaving out Form BCC. The form says a copy must be enclosed.
- Signing in the wrong order when using a POA. The POA must obtain the transferor’s seller acknowledgment signature before signing the Declaration and submitting the sale request.
- Trying to transfer the credit before meeting compliance requirements. DOR will not recognize a transfer, sale, or assignment before all the listed legal requirements are met.
- Failing to maintain the required cleanup status. If the transferor stops maintaining remedy operation status or a permanent solution in violation of the Massachusetts Contingency Plan before selling the property or ending the leasehold interest, sold credits are recaptured as taxes due from the transferor in the year of that failure.
Questions people ask
What amount is eligible for transfer?
The eligible amount is the amount on line 1 of Form BCC that remains unused by the taxpayer or transferor.
What does the purchaser receive from DOR?
DOR issues a certificate showing the amount of credit received. The recipient must attach that certificate to each tax return on which the credit is claimed.
What cleanup requirements apply before the credit can be claimed?
The transferor must have achieved and maintained a permanent solution or remedy operation status. Before the credit is claimed, the transferor must file a response action outcome statement or remedy operation status submittal with the Department of Environment Protection.
Who can answer questions about the application?
Contact the Brownfields Credit Unit at 617-887-6978.