EXTENDING AND EXPANDING THE FEDERAL BROWNFIELDS TAX INCENTIVE
WHEREAS, the Brownfields Remediation Tax Deduction was enacted in 1997, largely in
response to calls from the nation's mayors for tax incentives to help local communities cleanup and
reuse brownfield sites; and
WHEREAS, in 2000, the nation's mayors and other interested parties called upon Congress to
simplify and extend the expiration of the original Brownfields Remediation Tax Deduction, and
Congress responded by passing legislation to accomplish those objectives; and
WHEREAS, private parties in numerous communities have taken advantage of this tax incentive
which, under current law, allows cleanup costs to be "expensed" (i.e. deducted against tax liability
in the year the costs are incurred) at certain sites where there has been an actual release, threat of
release or disposal of a hazardous substance; and
WHEREAS, the current law is set to expire in 2004, the consequence of which will be that private
parties who incur cleanup costs after December 31, 2003, will no longer be eligible for the tax
deduction; and
WHEREAS, the nation's mayors recognize that the Brownfields Remediation Tax Deduction is a
valuable tool that encourages brownfield cleanups in the nation's communities; and
WHEREAS, due to the fact that there are still several hundred thousand brownfield sites in
communities throughout the country, the nation's mayors believe it is important to extend the
expiration date of the current tax deduction; and
WHEREAS, the nation's mayors believe that there may be opportunities to expand upon the
current tax deduction as a means of further encouraging and accelerating brownfields
redevelopment,
NOW, THEREFORE, BE IT RESOLVED that The United States Conference of Mayors
hereby urges Congress to enact legislation to extend the expiration date for the tax deduction so
that it will be available for a longer period of time; and
BE IT FURTHER RESOLVED that The U.S. Conference of Mayors hereby urges the U.S.
Environmental Protection Agency and the U.S. Treasury Department to work with Congress to
investigate opportunities to expand the universe of brownfield sites or the types of costs eligible
for a federal tax benefit.
©2003 U.S. Conference of Mayors 
