How does the Gulf Opportunity Zone Act complement the Brownfields Tax Incentive?
A12: On December 21, 2005, President Bush signed the Gulf Opportunity Zone (GO Zone) Act of 2005 to provide tax benefits for areas affected by Hurricane Katrina, and certain additional areas affected by Hurricanes Rita and Wilma. Intended to speed rebuilding efforts in hurricane-impacted gulf areas, the GO Zone Act allows businesses to deduct 50 percent of their cleanup and demolition costs. Because the Brownfields Tax Incentive allows the deduction of 100 percent of cleanup costs, and because deductions under the incentive and the GO Zone cannot be claimed simultaneously, it may be more beneficial to use one or the other depending on expense eligibility. Taxpayers should consult with tax counsel and their appropriate state agency contact to determine the circumstances in which a taxpayer’s activities may qualify for deduction. A list of state contacts can be found at: http://www.epa.gov/brownfields/stxcntct.htm.
Related Questions
- Where can I get information related to Gulf Opportunity Zone Act of 2005 and the Katrina Emergency Tax Relief Act of 2005?
- Are there any petroleum-cleanup deductions under the GO Zone Act not allowed under the Brownfields Tax Incentive?
- How does the Gulf Opportunity Zone Act complement the Brownfields Tax Incentive?
