Brownfields Revitalization Incentive Program Tax Credit (BRIP)
About this page. This page explains the Brownfields Revitalization Incentive Program property tax credit in plain language. The credit is authorized under Maryland Tax-Property Article §9-229 - PDF, with additional requirements under Economic Development Article Title 5, Subtitle 3 and Environment Article §7-512 (Voluntary Cleanup Program). If anything on this page conflicts with the statute or regulations, the statute and regulations control.
Program Status
The program is currently active.
This is a local property tax credit for qualifying redevelopment projects on brownfield sites. It is available only in jurisdictions that have chosen to participate. Commerce administers the site qualification on behalf of participating jurisdictions.
Applications are accepted on a rolling basis. There is no annual deadline.
What This Program Does
The Brownfields Revitalization Incentive Program (BRIP) encourages redevelopment of contaminated or underused commercial and industrial properties, especially in distressed urban areas.
Eligible projects receive a credit against local real property taxes based on the increase in the property’s assessed value after the site is cleaned up and redeveloped. The credit helps offset the cost of environmental cleanup and returning the property to productive use.
The program supports:
- Redevelopment of underused land
- Environmental cleanup of contaminated sites
- Economic growth and job creation
- Revitalization of communities
- Reuse of existing infrastructure
Who This Is For
This credit may benefit:
- Businesses redeveloping contaminated commercial or industrial property
- Real estate developers
- Property owners undertaking environmental cleanup
- Investors purchasing brownfield sites
- Companies expanding operations on previously contaminated property
The project must involve property that is contaminated or perceived to be contaminated by hazardous substances or pollutants, and the site must be owned or operated by an inculpable person.
Definitions
Brownfield. The U.S. Environmental Protection Agency defines a brownfield as a property where expansion, redevelopment, or reuse may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant.
Inculpable person. A person who is not responsible for the contamination on the site. The Maryland Department of the Environment issues a letter confirming Inculpable Person status.
Qualified Brownfield site. A site that Commerce has determined qualifies for the BRIP tax credit. Commerce issues a letter that the property owner takes to the local jurisdiction to apply for the credit.
Voluntary Cleanup Program (VCP). A Maryland Department of the Environment program that oversees voluntary environmental cleanup of contaminated properties and confirms when remediation meets state standards.
Participating Jurisdictions
The credit is available only in jurisdictions that have chosen to participate. To participate, a local jurisdiction must either approve property tax credits under State statute or maintain a list of priority brownfields sites.
| Type | Participating jurisdictions |
|---|---|
| Counties | Allegany, Anne Arundel, Baltimore, Baltimore City, Cecil, Dorchester, Frederick, Howard, Montgomery, Prince George’s, Queen Anne’s, Somerset, Washington, and Worcester |
| Municipalities | Colmar Manor, Cumberland, Frederick, Salisbury, and Taneytown |
Participating jurisdictions as published by Commerce as of December 31, 2022. Confirm current participation with the local jurisdiction where the property is located before applying.
Important. Only sites located in a participating jurisdiction can be considered for BRIP. Availability and specific benefit levels may vary by jurisdiction.
Program Duration and Limits
Credit percentage
Participating jurisdictions provide a base credit equal to 50% of the local property tax attributable to the increase in the site’s assessed value — including improvements added within 5 years after the reassessment.
At the option of the jurisdiction, an additional credit may be provided. The additional credit may not exceed 20% of the remaining property tax attributable to the increase in assessed value.
The combined credit may equal up to 70% of the local property tax attributable to the increased assessed value.
Credit term
- 5 years for qualified properties
- If the site is in a designated Enterprise Zone, the jurisdiction may extend the credit for up to an additional 5 years — a maximum of 10 years total
Maximum benefit
Combined with other real property tax credits, the credit may not exceed 100% of the tax on the increased value of the site.
How the Program Works
The credit applies only to the increase in property value after cleanup and redevelopment. It does not reduce the tax on the property’s original value before redevelopment.
Example.
- A contaminated property has a low assessed value because of its environmental condition.
- After cleanup and redevelopment, the property is reassessed at a higher value.
- The credit reduces the local property tax owed on that increase for 5 years — or up to 10 years in an Enterprise Zone.
The three-step process
Businesses participate through a process involving three different agencies.
Step 1 — Environmental cleanup approval (MDE)
The property must be accepted into the Maryland Department of the Environment Voluntary Cleanup Program. MDE confirms that environmental contamination is addressed in accordance with state standards and issues the closure documentation.
Step 2 — Site qualification (Commerce)
The applicant submits a General Application and BRIP addendum to the Maryland Department of Commerce, requesting designation as a Qualified Brownfield site. Commerce reviews the application and issues a qualification letter on behalf of participating jurisdictions if the project meets program requirements.
Step 3 — Local tax credit approval (jurisdiction)
The applicant takes the Commerce qualification letter to the local jurisdiction to apply for the property tax credit. The jurisdiction applies the credit to the property’s tax bill based on the increased assessed value after redevelopment.
Key Eligibility Requirements
To qualify for the credit, a property must:
- Be contaminated or perceived to be contaminated by hazardous substances or pollutants
- Be located in a jurisdiction that participates in BRIP
- Be owned or operated by an inculpable person
- Be accepted into the Maryland Voluntary Cleanup Program
- Receive a Certificate of Completion or No Further Requirements Determination from MDE
- Be designated as a Qualified Brownfield site by the Maryland Department of Commerce
- Involve redevelopment or reuse of the property
Local jurisdictions may establish additional requirements.
Documents You Will Need to Apply
To request a letter from Commerce establishing that a site is a Qualified Brownfield site, the applicant must provide:
Application materials
- A completed General Application and the BRIP addendum as it relates to the project
MDE letters — all three required
- A letter evidencing acceptance of the property into the MDE Voluntary Cleanup Program
- A letter evidencing that the applying entity has Inculpable Person status
- A closure document — a Certificate of Completion or No Further Requirements Determination — issued once remediation is complete to MDE’s satisfaction
Local documentation
- A copy of the building permit issued for the project by the jurisdiction
Commerce or the local jurisdiction may request additional documentation to verify eligibility.
How to Apply
- Apply to the MDE Voluntary Cleanup Program. See Voluntary Cleanup Program information for enrollment details. Obtain the acceptance letter, Inculpable Person status letter, and closure document.
- Submit to Commerce. Provide the General Application, BRIP addendum, all three MDE letters, and a copy of the building permit. Commerce reviews the submission and issues a qualification letter if the site meets program requirements.
- Take the letter to the local jurisdiction. Provide the Commerce qualification letter to the jurisdiction to apply for the property tax credit. The jurisdiction applies the credit after the property is reassessed following redevelopment.
Application Review Timeline
Timing depends on:
- Acceptance into the Voluntary Cleanup Program
- Completion of environmental remediation
- Local jurisdiction review timelines
Contact Commerce or the local jurisdiction for estimated timelines.
How You Claim the Credit
The credit is applied directly to the local real property tax bill after redevelopment increases the property’s assessed value. The local jurisdiction administers the credit — there is no state tax return filing.
Confirm procedures with the local jurisdiction where the property is located.
Frequently Asked Questions
Brownfields FAQs
According to the U.S. Environmental Protection Agency, a brownfield is a property where expansion, redevelopment, or reuse may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant.
A brownfield site is often, but not always, located in a densely populated area and substantially underused. It is often an existing or former industrial or commercial property.
See the Voluntary Cleanup Program information page on the Maryland Department of the Environment website.
Once a property is qualified, Commerce issues a letter to the property owner. The owner takes that letter to the local jurisdiction to apply for the tax credit.
See the Participating Jurisdictions section above for the list published by Commerce. Because participation can change, confirm with the local jurisdiction where the property is located before applying.
Five years. If the site is in a designated Enterprise Zone, the jurisdiction may extend the credit for up to an additional five years, for a maximum of ten.
Legal Notices and Required Language
This credit is authorized under:
Additional requirements are governed by:
- Maryland Economic Development Article Title 5, Subtitle 3
- Maryland Environment Article §7-512 (Voluntary Cleanup Program)
Related resources:
- Maryland Department of the Environment — Brownfields / Voluntary Cleanup Program
- Maryland Department of Planning — Brownfields Redevelopment
Applicants should consult the statute and applicable regulations for complete legal requirements.
Contact
For questions about the BRIP property tax credit, the General Application, or the BRIP Addendum:
Caroline Kimani
Tax Specialist
Maryland Department of Commerce
Office of Finance Programs, Tax Incentives
Email: [email protected]
Phone: 410-767-0939