[20070119]RS21599_棕地税收优惠延期.pdf

1 For purposes of the tax incentive, a brownfield site (“qualified contaminated site”) is a propertyheld for use in a trade or business, for the production of income, or as inventory where there hasbeen a release, or threat of release, or disposal of a hazardous substance. Sites on the SuperfundNational Priorities List are excluded (26 U.S.C. 198(c).Order Code RS21599Updated January 19, 2007Brownfields Tax Incentive ExtensionMark ReischAnalyst in Environmental PolicyResources, Science, and Industry DivisionSummaryThe brownfields tax incentive expires on December 31, 2007. Enacted in 1997, theprovision allowed a taxpayer to fully deduct the costs of environmental cleanup in theyear the costs were incurred (called “expensing”), rather than spreading the costs overa period of years (“capitalizing”). The provision was adopted to stimulate the cleanupand development of less seriously contaminated sites by providing a benefit to taxpayingdevelopers of brownfield properties. In each of its budget proposals since FY2003, theadministration has suggested that Congress make the tax incentive permanent. The 109thCongress renewed the provision through 2007 (P.L. 109-432) and made it effectivere