Brownfields
Brownfields Financial Tax Incentive Program
What is the Brownfields Financial Tax Incentive Program?
The Brownfields Financial Tax Incentive Program (BFTIP) is an initiative of the government of Ontario to encourage the cleanup and redevelopment of brownfield properties.
It provides provincial education property tax assistance to match municipal property tax assistance for cleanup of eligible brownfield properties. Under the program, the province can cancel all, or a portion of the education property taxes of a property for up to three years. Municipalities can apply for an extension prior to the termination of the tax assistance.
How do I apply?
If you are a brownfield property owner interested in the Brownfields Financial Tax Incentive Program, contact your local municipality. Municipalities apply on behalf of property owners. They must also be qualified under the program before the owner can receive provincial assistance.
A municipality interested in BFTIP must first be offering municipal property tax assistance on the brownfield property located within a Community Improvement Plan project area.
The municipality will need specific information and an authorization from the property owner. These will be sent to MMAH and/or other ministries.
Ministry staff will review applications and will contact the municipality if more information is needed.
Local governments are responsible for their decisions and actions. Legal requirements not mentioned in the application may apply to the provision of BFTIP or a municipal bylaw. Municipalities are encouraged to obtain legal advice in developing or passing any bylaw, including a bylaw under section 365.1 of the Municipal Act, 2001 or where otherwise needed for the purposes of BFTIP.
Overview of Application Requirements
For complete information on program criteria and requirements click here.
- Application Form - The municipality must fill out an application form for each property it proposes to receive education property tax assistance.
- Proposed Municipal Tax Assistance Bylaw - The proposed municipal tax assistance bylaw must include the details of the municipal property tax assistance to be offered to brownfield property owner(s) over a given time period.
- Community Improvement Plan (CIP) – The municipality must include a copy of the relevant CIP, and the bylaw adopting it, enabling the municipality to provide municipal property tax assistance.
- Program Information and Document Requirements – A variety of other information requirements apply such as confirmation of participation by upper-tier municipalities (if applicable), current assessment information, and estimates of the tax assistance to be provided.
Requirements of the Brownfields Financial Tax Incentive Program Attachment (PDF 64KB)
Application for Matching Education Property Tax Assistance Attachment (PDF 45KB)
Annual Progress Report Attachment (PDF 23KB)
Frequently Asked Questions Attachment (PDF 36KB)
Where do I get more information?
The nearest regional Municipal Services Office is your contact for information about the Brownfields Financial Tax Incentive Program.
Brownfields Funding Sources and Further Incentives in Ontario
The Province of Ontario offers the following tools and incentives municipalities can use to support brownfield projects.
Ontario Ministry of Municipal Affairs and Housing
The Brownfields Financial Tax Incentive Program (BFTIP) provides provincial education property tax assistance to match municipal property tax assistance for the cleanup of eligible brownfield properties. The Province also offers Tax Increment Financing (TIF), a financing mechanism that uses the increase in property tax revenues generated by the redevelopment of a property to cover costs associated with redevelopment.
Incentives available: Tax incentives offered under the BFTIP are proportional to the tax assistance offered by the municipal government, not to exceed the total cost of rehabilitating the site. Tax incentives offered under TIF can cover up to 50 per cent of the cost of rehabilitation.
The Heritage Property Tax Relief Measure enables municipal governments to provide tax benefits to owners of brownfield sites located on heritage properties.
Incentive available: Between 10 and 40 per cent of the municipal and school taxes levied on the property.
The Planning and Conservation Land Statute Law Amendment Act, 2006 enables municipal governments to help stimulate and encourage brownfield redevelopment. Through Community Improvement Plans (CIPs), municipalities may approve financial assistance to the private sector for costs associated with new building construction and energy efficiency initiatives.
Tool available: Policy mechanism that enables municipalities to offer financial support and tax incentives for brownfield remediation projects.
Provincial Policy Statement, 2005
The Provincial Policy Statement supports and prioritizes brownfields redevelopment initiatives. The Statement identifies brownfield sites as opportunities for redevelopment and recognizes the important role that intensification and redevelopment play in meeting land use requirements.
Tool available: Policy mechanism that enables municipalities to offer financial support and tax incentives for brownfield remediation projects.
Infrastructure Ontario's OSIFA Loan Program is an alternative financing solution designed to help public sector clients seek affordable, long-term financing in support of infrastructure development across Ontario. This includes the clean-up of brownfield sites.
Incentive available: Infrastructure Ontario loans can be used for any capital investments, including renovation and retrofitting, the clean-up of brownfield sites, facility or land acquisition, new construction projects, energy efficiency projects, accessibility improvements, vehicles and maintenance equipment.
Ontario Ministry of Finance - Tax Increment Financing (TIF)
To qualify for a TIF, a municipality must prepare and adopt a community improvement plan (CIP) for one or more designated community improvement project areas. Once the plans are approved by the Province of Ontario, the municipality may offer TIFs, grants, loans and other financial incentives to property owners, tenants or their assignees within the geographic area covered by the community improvement plan.
Incentive available: TIF is a financing mechanism that uses the increase in property tax revenues generated by the redevelopment of a property or area to pay for the costs associated with redeveloping that property or area.
Joint Provincial and Municipal Tax Increment Grant (TIG) Program
The joint Tax Increment Grant (TIG) program demonstrates how the Regional Government and Area Municipal Government can work together to provide financial incentives for brownfield remediation and redevelopment.
Incentive available: The TIG provides grants for sites in designated Community Improvement Areas that meet the definition of a brownfield to help the remediator recuperate some or all of the clean-up costs, thus clearing the way for future redevelopment
