2003 Adopted Resolutions
71st Annual Meeting
Denver

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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.