How can a taxpayer verify that a property is eligible for the Brownfields Tax Incentive?
A32: Taxpayers need to receive a statement from their designated state agency (usually the department responsible for environmental protection) that there has been a release, threat of release, or disposal of any hazardous substance at or on the property. Taxpayers and/or their tax counsel should contact their designated state agency to learn what documentation the state requires the taxpayer to submit in order to obtain this statement. Once the statement is issued, the IRS will consider it valid for the life of the tax incentive. To claim the deduction, you need simply write “Section 198 Election” on your income tax return next to the line where you claim the deduction. Any written verification received from the state should be maintained in the taxpayer’s records. Taxpayers can find contact information for their designated state agencies by accessing EPA’s Office of Brownfields and Land Revitalization site at http://www.epa.gov/brownfields/stxcntct.htm. The taxpayer is responsible fo
