A new push to make brownfield cleanup more affordable

esty-brownfields-bill-2015Congresswoman Elizabeth Esty and Mayor Patricia Murphy of New Milford, CT visit New Milford’s Century Brass mill, a brownfield site, in 2014. Photos via The News-Times.

Congresswoman Elizabeth Esty (D-CT-5) is fighting hard to reinstate a tax incentive to help cleaning up contaminated land more affordable and more feasible.

Late last month, Esty introduced the Brownfields Redevelopment Tax Incentive Reauthorization Act of 2015 (H.R. 2002), a bill to re-establish the Brownfields Tax Incentive which ended in 2011.

Originally signed into law in 1997 and codified through Section 198(h) of the Internal Revenue Service’s tax code, the Incentive allowed taxpayers to fully deduct the costs of brownfield sites’ environmental cleanup the year the costs were incurred—making the arduous process more affordable for those who take it on.

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Brownfields Tax Incentive Reauthorization Introduced

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The redeveloped Merchandise Mart on Washington Avenue in St. Louis. Via Flickr

This week, Congresswoman Elizabeth Esty (D-CT) introduced the Brownfields Redevelopment Tax Incentive Reauthorization Act of 2014, or H.R. 4542. The legislation would re-establish the brownfields tax incentive for five years through 2018. In a bipartisan show of support for the bill, Congressman Tim Bishop (D-NY) and Congressman Chris Gibson (R-NY) have signed on as cosponsors.

Originally signed into law in 1997 and extended through December 31, 2011, Section 198’s Brownfields Tax Incentive is a tax deduction intended to encourage the cleanup and revitalization of brownfield properties. Under the incentive, environmental cleanup costs are fully deductible in the year incurred, rather than capitalized and spread over time. Improvements in 2006 expanded the Incentive to include petroleum cleanup.

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