5IN SUPPORT OF THE RENEWAL OF THE FEDERAL BROWNFIELDS TAX
DEDUCTION

WHEREAS, the Brownfield 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, the current law expired in 2011, the consequence of which is that brownfields remain idle in communities across the country because private parties who conduct cleanups after December 31, 2011 cannot take the deduction; and

WHEREAS, in 2000, the nation’s mayors and other interested parties called upon Congress to simplify and extend the expiration of the original Brownfield 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 allows cleanup costs to be “expensed” ( i.e., deducted against tax liability in the year the costs are incurred) at sites where there has been an actual release, threat of release or disposal of a hazardous substance; and

WHEREAS, due to the fact that there are several hundred thousand brownfield sites in communities throughout the country, the nation’s mayor’s believe it is important to advance the cleanup and redevelopment of brownfields; and

WHEREAS, the nation’s mayors recognize that the Brownfield Remediation Tax Deduction is a valuable tool that encourages brownfield cleanups in the nation’s communities; and

WHEREAS, parties at more than 350 sites in over 38 states  have cleaned up contaminated sites and brought jobs and  economic development  to  communities across the nation; and

WHEREAS, the redevelopment of these formerly underused sites has brought housing, retail, business,  and office space and boosted government tax revenue for communities across the country,

NOW, THEREFORE, BE IT RESOLVED that The United States Conference of Mayors hereby urges Congress to enact legislation to renew the Brownfield Remediation Tax Deduction for a period of years for communities nationwide.