Brownfield Tax Credit
Incentivize cleanup and redevelopment of contaminated properties
What is a Brownfield?
The EPA defines a brownfield as "a property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant."
450,000+
Estimated brownfields in the US
Common Sites
Gas stations, dry cleaners, factories
Opportunity
Often in prime urban locations
Program Details
Established
Varies by state/local jurisdiction
Administered By
State and local governments
Credit Structure
Typically a percentage of eligible remediation and redevelopment costs
Claim Period
Varies by jurisdiction
Eligible Projects
Properties with environmental contamination requiring cleanup
Compliance
Must meet environmental cleanup standards
Types of Brownfield Incentives
State Tax Credits
Many states offer tax credits for qualified cleanup costs, often ranging from 25-100% of eligible expenses.
Federal Expensing
IRC Section 198 allows immediate deduction of environmental remediation costs for qualified contaminated sites.
EPA Grants
Brownfields Assessment, Cleanup, and Revolving Loan Fund grants available through EPA programs.
State VCP Programs
Voluntary Cleanup Programs provide liability protection and streamlined regulatory processes.
💡 Stacking Opportunity
Brownfield incentives can often be combined with other tax credit programs. A contaminated site in an Opportunity Zone that also qualifies for NMTC can leverage multiple incentive layers to make challenging redevelopment projects financially viable.
Have a Contaminated Site?
Check what incentives are available and find development partners.