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Requirements of the Brownfields Financial Tax Incentive Program

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Requirements of the Brownfields Financial Tax Incentive Program

Part A - Program Criteria

1. Municipalities apply to the Ministry of Municipal Affairs and Housing (MMAH) on behalf of a brownfields property owner for this program.

A property owner interested in BFTIP should contact the local municipality or official.

If the municipality is participating in BFTIP, for the purposes of the program it will request certain information and an authorization from the property owner. The information, and the authorization, will be forwarded to MMAH or other ministries.

2. Parts B and C below list the information required for the purposes of approval of BFTIP assistance by the province.

Please note this includes:

  • the information required by 365.1(5) of the Act (see explanatory note 3 below), and
  • the additional information required for BFTIP purposes.

Applications by municipalities should include, as an appendix, all the documents and information listed in Part B and C.

3. Municipalities must provide certain information to the Minister of Finance, before passing any tax assistance bylaw under subsection 365.1(2) of the Municipal Act, 2001.

See subsection 365.1(5) of that Act.

However, please note:

  • a municipality can provide the above information by including it with this application. There is no need for the municipality to send the information separately to the Minister of Finance.
  • municipalities do not have to seek BFTIP assistance from the province when they provide the information required by 365.1(5). Nonetheless, for the purposes of this application, it is assumed that the proposed bylaw will include provisions for provincial tax assistance.

4. If a municipality passes a tax assistance bylaw, it must within 30 days give a copy of the bylaw to the Minister of Finance as well as the Minister of Municipal Affairs and Housing under subsection 365.1(7) of the Act.

However, please note in connection with subsection 365.1(7), a municipality can give the bylaw copy to the Ministry of Municipal Affairs and Housing. There is no need for the municipality to provide a copy separately to the Minister of Finance.

5. MMAH regional staff will review BFTIP applications completed by the municipality, once received. Staff may contact municipalities if further information is needed in connection with an application.

6. Local governments are responsible for their decisions and actions. Legal requirements not mentioned in this application may apply to the provision of BFTIP or a bylaw made under section 365.1 of the Municipal Act, 2001. Municipalities are encouraged to obtain their own legal advice in developing or passing any bylaw, including a bylaw under section 365.1 of the Act, or where otherwise needed for the purposes of this program.

7. In this form,

  • the “Act” refers to the Municipal Act, 2001,
  • “Community Improvement Plan” or “CIP” refers to a community improvement plan adopted by a municipality in accordance with section 28 of the Planning Act, and
  • “matching education property tax assistance” means cancellation or deferral that applies to all or a portion of the taxes for school purposes levied on a property under a bylaw made under subsection 365.1(2) of the Municipal Act, 2001 because the bylaw has been approved by the Minister of Finance under subsection 365.1(6) of that Act;
  • “program” or “BFTIP” refers to the “Brownfields Financial Tax Incentive Program”.

8. The information required by this form is subject to change. Please check with MMAH regional staff for updated information.

Part B – Information and Document Requirements

Subsection 365.1(5) Information Requirements

Proposed Municipal Tax Assistance Bylaw (subsection 365.1(2))

Required by paragraph 1 of subsection 365.1(5)

Instruction

Please attach a copy of the municipality’s proposed subsection 365.1(2) Municipal Act,
2001 tax assistance bylaw

Program information

The proposed municipal tax assistance bylaw would outline the details of the municipal property tax assistance proposed to be offered to brownfield property owner(s) over a given time period.

For BFTIP approval purposes, it will make no difference if multiple properties are referenced under a single bylaw, provided there is clear reference to the level of tax assistance to be offered for each property listed.

To help avoid time delays and possible revisions, municipalities may wish to consult with their local Municipal Services Office before taking a proposed bylaw to Council.

Resolution, if any, passed by the upper-tier municipality under subsection 365.1(4.1) of the Act

Required by paragraph 2 of subsection 365.1(5) of the Act

Instruction

Please attach a copy of the relevant resolution, if any, passed by the upper-tier municipality under subsection 365.1(4.1) of the Act.

Program information

The program requires information about the participation of the upper-tier municipality, through its cancellation of upper-tier taxes, where applicable.

An estimate of how much the tax assistance to be provided by the proposed 365.1(2) bylaw will cost the local municipality

Required by paragraph 3 of subsection 365.1(5) of the Act

Instruction

Please attach a copy of the above estimate.

Program information

The program requires an estimate of the cost of the proposed tax assistance to the municipality.

The tax rates currently applicable to the eligible property and its assessment and property class

Required by paragraph 4 of subsection 365.1(5) of the Act

Instruction

Please include the above information with the application.

Program information

The program requires the above tax rate and assessment and property class information in relation to the eligible property.

The taxes currently levied on the eligible property for municipal purposes and for school purposes

Required by paragraph 5 of subsection 365.1(5) of the Act

Instruction

Please include the above information with the application.

Program information

The program requires the above information about current municipal and school taxes levied on the eligible property.

Information confirming that the property is “eligible property” within the meaning of section 365.1 of the Act

Required by paragraph 1 of subsection 1(1) of Ontario Regulation 274/04 (amended to O.R. 405/06) “Tax Matters – Notice under Subsection 365.1 of the Act”

Instruction

Please include the above information with the application.

Program information

The program requires information to confirm the property is “eligible property” as defined in subsection 365.1(1) of the Act.

The information required for the purposes of the program is:

  • identifying information for the property, and
  • confirmation that
    • a phase two environmental site assessment has been conducted for the property;
    • a record of site condition (RSC) cannot be filed for the property, because it does not meet certain Environmental Protection Act standards (the standards listed in clause (b) of the definition of “eligible property” found in subsection 365.1(1) of the Municipal Act, 2001); (In other words, it has been determined that remediation to meet Environmental Protection Act standards is required, before a RSC can be filed for the property on the Brownfields Environmental Site Registry.)
    • the property is included in a community improvement project area for which a Community Improvement Plan, with tax assistance provisions contained in the plan, is in effect.

All conditions imposed by the municipality under subsection 365.1 (2) of the Act in respect of the property and confirmation of which of the conditions, if any, have been satisfied

Required by paragraph 2 of subsection 1(1) of Ontario Regulation 274/04 (amended to O.R. 405/06) “Tax Matters – Notice under Subsection 365.1 of the Act”

Instruction

Please include the above information with the application.

Program information

For program purposes, identify any conditions required by or under the proposed or existing 365.1(2) tax assistance bylaw, and confirm if any of them have been satisfied on or before the date of the application.

A copy of any agreements or proposed agreements between the municipality and the owner of the property and any undertakings or proposed undertakings by the owner of the property that are part of the arrangements relating to the tax assistance

Required by paragraph 3 of subsection 1(1) of Ontario Regulation 274/04 (amended to O.R. 405/06) “Tax Matters – Notice under Subsection 365.1 of the Act”

Instruction

Please include the above information with the application.

Program information

As program requirements:

  • the municipality must provide a copy of the signed or proposed tax assistance agreement between the municipality and the owner
  • the municipality must provide a copy of any undertakings or proposed undertakings by the owner of the property that are part of the arrangements relating to the tax assistance

The information provided to the municipality by the owner of the property under subsection 365.1 (8) of the Act

Required by paragraph 4 of subsection 1(1) of Ontario Regulation 274/04 (amended to O.R. 405/06) “Tax Matters – Notice under Subsection 365.1 of the Act”

Instruction

Please include the above information with the application.

Program information

The program requires a copy of any information the municipality requires to be provided to it, as part of an application for tax assistance to the municipality by an owner of an eligible property.

A brief description of the remediation proposed, including technologies to be used

Required by paragraph 5 of subsection 1(1) of Ontario Regulation 274/04 (amended to O.R. 405/06) “Tax Matters – Notice under Subsection 365.1 of the Act”

Instruction

Please include the above information with the application.

Program information

The program requires information about the remediation process (e.g. a brief description of the proposed remediation activities and technologies to be used to remediate the property). Municipalities may consider requesting this information from the property owner.

The estimated cost of the remediation, including pre-remediation studies

Required by paragraph 6 of subsection 1(1) of Ontario Regulation 274/04 (amended to O.R. 405/06) “Tax Matters – Notice under Subsection 365.1 of the Act”

Instruction

Please include the above information with the application.

Program information

The program requires information about the estimated costs of the remediation, including pre-remediation studies. Municipalities may consider requesting this information from the property owner.

The estimated duration of the remediation

Required by paragraph 7 of subsection 1(1) of Ontario Regulation 274/04 (amended to O.R. 405/06) “Tax Matters – Notice under Subsection 365.1 of the Act”

Instruction

Please include the above information with the application.

Program information

The program requires a time estimate for remediation completion. Municipalities may consider requesting this information from the property owner.

Part C – Other Program Requirements

Community Improvement Plan and Adopting Bylaw

Instruction

Please include with the application a copy of the relevant CIP and the bylaw adopting it.

Requirements

For program purposes, the bylaw adopting the CIP must contain a reference to the effect that:

  • section 365.1 of the Municipal Act, 2001 enables municipalities to provide municipal property tax assistance in connection with a community improvement plan, and Minister of Finance approval is required before matching education property tax assistance will be provided.

The above reference may be placed in the preamble to the bylaw.

Also for program purposes, the CIP itself must contain:

  • provision for tax assistance under section 365.1 of the Municipal Act, 2001; and
  • acknowledgement that under the Brownfields Financial Tax Incentive Program, the timing of and conditions that apply to municipal property tax assistance may vary from those for matching education property tax assistance.

Proposed subsection 365.1(2) Municipal Act, 2001 tax assistance bylaw

Requirements

For program purposes, a proposed section 365.1 tax assistance bylaw included with the application must include provision:

  1. that a tax assistance agreement be in place between the owner and the municipality, before the owner can receive tax assistance under the bylaw;
  2. that tax assistance will be given for the purpose of offsetting remediation costs incurred by the property owner. (see also Part B, first section and other program information)

Phase Two Environmental Site Assessment (ESA)

Requirement

The application must include a copy of the relevant ESA, as a valid ESA for a property is needed to qualify the property as a “brownfield” for purposes of the program.

Other ESA Information

The ESA must be completed by a qualified person on behalf of the property owner. More information about qualified persons is found in the Environmental Protection Act and its regulations.

Information Required by the Municipal Program

Requirement

For program purposes, the application must include a summary of the information required of the owner by the municipality for the purposes of the municipality’s municipal tax assistance program.

Separate BFTIP Application Form

Requirement

A separate application form must be provided for each property proposed to receive education property tax assistance under the program.

Note - Ongoing Program Requirements

There are requirements for this program that begin or continue after the application is filed with MMAH. See “Program Conditions” in the application form.