The U.S. Environmental Protection Agency (EPA), New York State Department (NYSDEC) and local governments encourage brownfields developers to learn about and take advantage of the variety of financial and technical assistance resources available to support a brownfield project. The success of many brownfields cleanup and redevelopment projects depends on the ability of developers and investors to craft a financing package that leverages numerous sources of funding available from a variety of sources.
Brownfield Financial Incentives
Provided below is a summary of the key federal tax incentives and credits that can be leveraged for brownfields cleanup, redevelopment, and reuse. The descriptions of these incentives and credits are simplified explanations of provisions, which often contains additional caveats, restrictions, and modifications. Anyone interested in using these incentives should review the relevant sections of the tax code in detail and consult a tax professional prior to making business decisions.
The following incentives available to EPA provide a variety of grants to state, local, and tribal governments, quasi-governmental entities, 501(c)(3) nonprofit organizations, and regional councils/commission.
New York State
Assessing and remediating a brownfield site leads to new development opportunities, which enhances neighborhood property values and increases the municipal tax base.
Redeveloped properties may also create more walkable communities, helping residents who might not have access to vehicles have safer access to schools, hospitals, and grocery stores. An additional benefit is the ability for a municipality to generate funds through an increase in local taxes. This growth and renewal can create jobs. Two recent studies indicated cleaning up brownfield sites can lead to a 5-15 percent increase in value of properties located 1.29 miles from a site.