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This bill would change the federal tax code so certain costs for cleaning up polluted or contaminated land can still be written off for tax purposes. In simple terms, it would keep a tax break for people and companies that spend money to fix damaged property, which is meant to help bring old industrial sites back into use. The bill would allow this tax treatment for cleanup costs paid or incurred through the end of 2024, and then again for costs incurred after the end of 2028.
- It extends a tax benefit for environmental cleanup costs tied to redeveloping contaminated properties.
- Under the bill’s wording, the tax break would apply to eligible costs through December 31, 2024, and then start again after December 31, 2028.
- The change would take effect for cleanup expenses paid or incurred after December 31, 2024.
- The goal is to encourage redevelopment of neglected land by making cleanup projects less expensive from a tax standpoint.
Official Summaries
Brownfields Redevelopment Tax Incentive Reauthorization Act of 2025
This bill temporarily reinstates the election to expense environmental remediation costs paid or incurred in connection with the cleanup of certain business property (also known as the brownfields redevelopment tax incentive). (The election to expense allows a taxpayer to deduct such costs in the year incurred rather than treat such costs as capital expenses that are depreciated over a period of time.)
The brownfields redevelopment tax incentive allows a taxpayer to elect to expense costs that would otherwise be capitalized and are paid or incurred before 2012 in connection with the abatement or control of a hazardous substance on property (1) used in a trade or business, (2) for the production of income, or (3) held by the taxpayer primarily for sale in the ordinary course of a trade or business. (Some limitations apply.)
Under the bill, a taxpayer may elect to expense such environmental remediation costs paid or incurred in 2025-2028.
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 815 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 815
To amend the Internal Revenue Code of 1986 to extend expensing of
environmental remediation costs.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 28, 2025
Ms. Sherrill (for herself and Mr. Turner of Ohio) introduced the
following bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to extend expensing of
environmental remediation costs.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Brownfields Redevelopment Tax
Incentive Reauthorization Act of 2025''.
SEC. 2. EXTENSION OF EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.
(a) In General.--Section 198(h) of the Internal Revenue Code of
1986 is amended by striking ``incurred after December 31, 2011'' and
inserting the following: ``incurred--
``(1) after December 31, 2011, and before January 1, 2025,
or
``(2) after December 31, 2028.''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to expenditures paid or incurred after December 31, 2024.
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