BROWnfield Tax Credit

A brownfield tax credit would allow property owners and developers to reduce state income taxes by a percentage of the documented qualifying costs of brownfield cleanup. This tool can help provide a powerful incentive for cleaning up contaminated sites by offsetting costs and reducing risk of cleanup on sites that would otherwise remain polluted. The tax credit can:

• apply to prospective purchasers or non-responsible owners (public, private, nonprofit)
• have an annual program cap to limit risk to the state
• require property owners to be enrolled in a DEQ cleanup program
• require a contribution of cleanup costs from the owner

A tax credit program for brownfields would focus on any work done to assess and remediate properties, including assessment, demolition, cleanup and disposal. A tax credit would give a statewide incentive to property owners and developers that might not otherwise explore development on known brownfields. The credit could tilt development feasibility of key industrial and employment sites, as well as redevelopment opportunities statewide. Similar tax credits elsewhere have created thousands of jobs with relatively little public investment.

Current action: The coalition is reviewing a tax credit study by the Legislative Revenue Office to inform a more detailed conversation during the 2018 legislative session.