What sorts of government incentives are available to encourage private businesses to redevelop brownfields?
State and federal income tax incentives are designed to encourage private parties to clean up and redevelop brownfield sites. The federal Brownfields Tax Incentive was passed when President Clinton signed the Taxpayer Relief Act in August 1997. The Brownfields Tax Incentive allows for environmental cleanup costs at properties in targeted areas to be fully deducted in the year incurred, rather than having to be capitalized. The Illinois Environmental Remediation Tax Credit allows a company or an individual to obtain an income tax credit for certain environmental cleanup costs. The tax credit is worth up to 25% of the un-reimbursed eligible remediation costs. This tax credit can not be used if the taxpayer or any related party caused the contamination at the site.
