Are there any petroleum-cleanup deductions under the GO Zone Act not allowed under the Brownfields Tax Incentive?
A13: While the Brownfields Tax Incentive allows the deduction of petroleum-related cleanup expenses incurred from January 1, 2006 to the incentive’s current sunset date of December 31, 2009, those expenses are allowable under the GO Zone Act from August 28, 2005 through December 31, 2007. The GO Zone Act only allows deductions for 50 percent of these costs; but if your petroleum-related cleanup expenses were incurred from August 28, 2005 through December 31, 2005, this provides an opportunity not allowable under the Brownfields Tax Incentive to deduct half of those costs. Top of page III. Determining Eligible Expenses Q14: What is the difference between incurring and paying for an expenditure? If the taxpayer incurs an allowable expenditure in one tax year, but pays for it in another tax year, does the taxpayer get to elect in which tax year to take the deduction? A14: Generally, the year in which the taxpayer may take a deduction will depend on the taxpayer’s accounting method. Taxpay
