Brownfield Remediation Tax Assistance (BRTA)

Brownfield Remediation Tax Assistance (BRTA) is a component of the Economic Development & Growth in Employment Incentive Program. The BRTA program encourages investment in sites where contamination has rendered the property vacant, under-utilized, unsafe, unproductive or abandoned. 

Remediation of sites and their subsequent development may result in an increase in the assessed of value of a property. The BRTA allows the City of Toronto to cancel all or a portion of the tax increase directly attributed to the increase in assessed value related to the remediation and development to help brownfield property owners offset the remediation costs incurred.

Incentive Duration

BRTA may be provided for either: 

  • Up to two years or until all eligible remediation costs are compensated through the program (whichever occurs first), or 
  • Up to three years or until all eligible remediation costs are compensated through the program (whichever occurs first), if the property is also receiving development grants. In this case, the property is eligible for combined BRTA and Development Grants for a maximum of seven years. 

In addition, the Province of Ontario, through their Brownfield Tax Incentive Program may allow for the cancellation of all or a portion of the education property taxes for up to three years as a proportionate match to the City of Toronto BRTA incentive. 

Eligibility

To qualify for BRTA, the property must be developed for employment generating uses. Ancillary retail (up to a maximum of 20 per cent of the gross floor area of the development), concert halls and theatres are considered employment generating uses. 

For clarity, retail that is not ancillary retail, stand-alone warehouses and hotels are not eligible uses. Should ineligible uses be developed on the property, the owner is required to pay the full property taxes for that portion of the property that contains ineligible uses.  

For a property developed for a combination of eligible and ineligible uses, the portion attributable to the ineligible uses is determined based on the Gross Floor Area of the ineligible use(s). 

The applicant is required to submit to the City:  

  • A Phase II Environmental Site Assessment confirming that the property does not meet standards that would permit a Record of Site Condition to be filed with the Ministry of Environment
  • A brief description of the remediation proposed, including technologies to be used and the expected duration of remediation work
  • A statement and summary of all costs to be incurred in connection with the remediation
  • A signed declaration respecting funding from other City or external sources. 
  • Details of the proposed development.

In addition, the following criteria must be met: 

  • The property must not be in arrears of taxes or other fees and charges imposed by the City 
  • The Owner must enter into a Financial Incentives Agreement with the City to be registered on title, pursuant to Section 28(7) and 28(11) of the Planning Act  
  • The applicant must meet any further conditions as may be included in the By-law passed pursuant to Section 333(2) of the City of Toronto Act, 2006, if any.  

Eligible Costs

  • Costs incurred for remediation within 12 months prior to the submission of an application for the Brownfield Remediation Tax Assistance
  • Environmental studies (i.e. Phase II Environmental Site Assessment and/or Phase III Environmental Site Assessment/Remedial Workplan)
  • Environmental remediation
  • Environmental insurance premiums
  • Demolition or removal of debris relating to remediation 
  • Costs of complying with a Certificate of Property Use. 

How the Assistance is Calculated

Assistance in each year is based upon all or a portion of the municipal property tax increase resulting from post-remediation development. 

The BRTA will not exceed the municipal tax increment in any given year nor will it exceed the property owner’s eligible remediation costs.

How to Apply

Eligible applicants may apply for BRTA by contacting program staff by email at incentives@toronto.ca or by phone at 416-392-0466.