Brownfield Tax Credit Program

Brownfield Tax Credit Program

I am introducing new brownfields redevelopment legislation in Congress this month. In a recent news conference in Washington, the legislation was announced and received broad bipartisan support from the U.S. Conference of Mayors, the largest advocacy group for mayors in the nation.

Brownfields are abandoned or underutilized properties where expansion or redevelopment is complicated by environmental contamination. Brownfields are found in every state, city, town, as well as urban and rural areas, both large and small. And although brownfields are especially prevalent in cities and urban areas, if you've ever driven past an abandoned gas station or warehouse, you've seen a brownfield.

An additional benefit for many rural area residents, who have carefully sought their environments, is that by reusing previously developed sites, this legislation slows urban sprawl. In this way, we preserve more of our "greenfields" and other undeveloped space.

Behind rusting chain link fences, are broken windows, crumbling buildings and below the surface, environmental contamination keeping away jobs and robbing our cities and towns or economic vitality.

As abandoned buildings or lots brownfields have a decaying influence on the community and present a tremendous barrier to economic growth and opportunity. There are often large populations in the immediate area that need employment opportunities. Once it becomes economically feasible to clean up these sites they become prime spots for business, economic development and for job creation.

The legislation I am introducing allows federal tax credits for up to 50% of approved demolition and remediation costs of brownfields redevelopment. Other aspects of the legislation include incentives for the original polluters to participate by releasing them from liability in exchange for 25% of remediation costs. The owner or other state or local government sources may pay the remaining 25%.

Current estimates suggest, as much as $1.9 billion annually in new tax revenue could be generated if current brownfield sites are made productive. In this way, cleaning up brownfields actually has a net positive impact on the federal treasury.

The old adage, "location, location, location," is why many brownfields have the potential to be valuable. They often are at great sites with roads, power, sanitation and other necessary infrastructure requirements already present.

The Brownfields Tax Credit Program is a powerful incentive for cities, developers and parties facing brownfields liability to transform the sites into job producing economic development. As President Bush said, "When a business develops a brownfield, it turns a stagnant plot of land into a productive neighborhood…Environmental protection and economic growth can go together."

Without additional federal attention, brownfields will remain and continue to be a blighting influence on cities and towns across the country. We cannot leave these abandoned sites as a rusting monument to their once productive past. Redeveloping brownfields will improve the environment; create jobs while best utilizing our land resources.