Bailout Bill Extends Federal Brownfields Tax Incentive |
The Wall Street rescue package passed by the House and Senate includes an extension, until December 31, 2009, of the Section 198 brownfields remediation expensing provision, which allows property owners to deduct the expenses of cleanups in the year incurred, rather than treat them as capital improvements. First signed into law as part of the Tax Relief Act of 1997, it is the only federal incentive targeted to private site owners, typically new property purchasers. Properties eligible for the incentive include those contaminated with hazardous substances or petroleum. Section 198 also allows property owners to amend tax returns to include deductions for past cleanups. The tax expensing program had expired at the end of 2007. As the bailout bill is written, the deduction is retroactive back to December 31, 2007.
No provisions of the incentive have changed. It is still applicable to non-Superfund caliber properties used for trade or business. Taxpayers must obtain a statement from their state environmental agency verifying that they are in fact brownfield sites. Any corporation that is considering filing an amended return to take advantage of the retroactive tax deduction still must do so within three years after the date it filed its original return, or within two years after the date it paid the tax.
- Courtesy of the “National Brownfields Association.”
For more information about the Federal Brownfields Tax Incentive, or any of the financial incentives offered by Delaware, or the surrounding States, contact Mark Lannan at (302) 656-9600.