News

In the waning hours of the 2009-2010 legislative session, the Legislature passed Senate Bill No. 2582, An Act Relative to Economic Development Reorganization (the “Act”), which, among other initiatives, authorizes the Permit Extension Act (Section 173) and extends the Massachusetts Brownfield Tax Credit.

True to its name, the Permit Extension Act extends for two years the expiration date of most local and state permits and approvals that were issued or in existence between August 15, 2008 and August 15, 2010. The two-year extension is added to the current expiration date of the permit or approval.

The Permit Extension Act defines “approval” broadly to include zoning permits (including Boston), highway access permits, Chapter 91, wetlands permits and approvals, Endangered Species Act permits, local building permits and MEPA decisions.

Permits and approvals not covered by the Act include Chapter 40B Comprehensive Permits, Massachusetts Historical Commission approvals and permits issued by special state agencies such as the MWRA. In addition, the extension does not specifically include zoning freezes under section 6 of chapter 40A.

The Act also provides good news for those seeking to develop Brownfield sites. Sections 113, 114, 127 and 128 extend the Brownfield Tax Credit by two years. The new deadline for cleanup costs to be eligible for the credit is now January 1, 2014. The credit is substantial, ranging from 25% up to 50% of cleanup costs incurred, depending on whether the cleanup is closed out with MassDEP or whether an Activity and Use Limitation is placed on the property.

Rich Gallogly and Michael Parker are members of Rackemann, Sawyer & Brewster’s Environmental and Land Use Department. For more information, Rich can be contacted at (617) 951-1172 or rgallogly@rackemann.com and Michael can be contacted at (617) 951-1190 or mparker@rackemann.com.

This advisory should not be construed as legal advice or a legal opinion. The contents are intended for general informational purposes only. Readers should consult with an attorney with any specific questions regarding the information provided in this advisory.