Medpace moved their 700-employee headquarters to Cincinnati and used the tax expensing program to overcome $3.0 million in cleanup costs. Photo via Cincinnati.com.
Brownfields professionals and coalition members are invited to join a new committee of the National Brownfields Coalition dedicated to re-implementing the Section 198 Remediation Tax Expensing program.
The Committee is organizing support from communities that have benefited from the program, and is providing information to Congress on the past impacts and the future potential of the program. The Committee has already organized a sign-on letter in support of the measure and hosted a webcast about the issue with our partner NALGEP. The webcast includes many project examples, including the Medpace office and research laboratory pictured above, which was built on a 29-acre parcel in Cincinnati that was once contaminated. Medpace has 750 employees at the site with plans for future expansion.
The section 198 Remediation Tax Expensing program, adopted by Congress in 1997, makes site cleanup expenditures fully deductible in the year incurred. This approach, originally adopted in the Community Renewal Act of 2000, treats cleanup of hazardous substances as a “repair” to the land, rather than a capital expenditure which must be depreciated over time. The result is to make the cost of cleanup less of a barrier to redevelopment of brownfield sites.
The program has been used to help clean up approximately 350 sites over the program’s 15 year history. The program was not renewed by Congress in the tax extenders bill that passed Congress in January 2013.
- Join the Committee: Contact Evans Paull or Mark McIntyre to become a Committee member.
- Provide information: Do you know of a site that used the Section 198 program? Either e-mail them to Evans Paull or fill out a short survey.
- Speak out in support of the Brownfields Tax Incentive. Click here to learn how.
Coalition Tax Expensing Committee