Turner bill would revive tax break to revitalize nation’s brownfields

U.S. Rep. Mike Turner (R-OH) on April 23 introduced bipartisan legislation that would authorize tax deductions toward the cleanup and redevelopment of America’s roughly half-a-million brownfields, which are former industrial or commercial sites that may have environmental contamination.

“As mayor of Dayton, I developed brownfields to reinvest in our city and spur economic growth, including the building of the Dayton Dragons stadium,” Rep. Turner said. “I know firsthand how important brownfields are for communities looking to rebuild. Our bill extends the brownfields tax credit to help cities like Dayton continue to grow.”

The Brownfields Redevelopment Tax Incentive Reauthorization Act of 2018, H.R. 5579, would amend the Internal Revenue Code of 1986 to extend expensing of environmental remediation costs through 2021. U.S. Rep. Elizabeth Esty (D-CT) joined Turner in introducing H.R. 5579, which has been referred to the U.S. House Ways and Means Committee.

“I hear time and time again from business owners, developers and local leaders across central and northwestern Connecticut that the high costs of cleanup deter initial private sector investments,” Rep. Esty said. “Cities and towns throughout Connecticut have strong industrial histories and are now in the process of transitioning to new sources of economic growth, which is critical to creating good-paying jobs right here in our state. I’m doing what I can to be a strong partner in these efforts.”

The brownfields tax incentive, which first passed as part of the Taxpayer Relief Act of 1997, permitted taxpayers to deduct remediation expenditures for the cleanup of a property that was used for a trade, business or to produce income, according to a statement from Rep. Turner’s office. The tax break received a two-year extension in 2009 that expired on Jan. 1, 2012, and it hasn’t been reauthorized since. If enacted, H.R. 5579 would reauthorize the tax incentive through Dec. 31, 2021, and provide four years of certainty for potential developers, according to the congressman’s staff.

Representatives of local government groups from across the country support the reauthorization efforts, including Tom Cochran, executive director of the U.S. Conference of Mayors; Clarence Anthony, CEO and executive director of the National League of Cities; Matthew Chase, executive director of the National Association of Counties; and Leslie Wollack, executive director of the National Association of Regional Councils.

In a joint April 23 statement, the organization leaders said H.R. 5579 would build on the most recent brownfields reauthorization and aid in future local cleanup and redevelopment efforts. They said 400,000 to 600,000 brownfield sites are estimated to exist in the United States and “more tools are necessary to help promote the redevelopment of these abandoned or underutilized properties.”

“This tax deduction allows for the expensing of all cleanup costs in the year incurred and serves as a powerful incentive to promote the cleanup of brownfields,” the organization leaders said in their joint statement. “Redeveloping brownfields is a win for the environment and a win for the economy.”

Kenneth A. Malinowski, acting director of the Department of Community Development in New Britain, Conn., added that brownfields funding that addresses environmental barriers is critical for establishing economic opportunities in all local communities.

“Returning these properties to the market creates jobs and housing in the local economy. Local growth leads to national growth,” Malinowski said.

U.S. Rep. Peter King (R-NY), another original cosponsor of H.R. 5579, called the tax incentive “an essential piece” for reviving the many contaminated sites. “Rather than spreading deductions over time, this legislation will encourage private-sector involvement in the cleanup and rehabilitation of brownfields properties,” he said.