H.R.815 - Brownfields Redevelopment Tax Incentive Reauthorization Act of 2025 (119th Congress)
Summary
H.R. 815, the Brownfields Redevelopment Tax Incentive Reauthorization Act of 2025, aims to amend the Internal Revenue Code of 1986 to extend the expensing of environmental remediation costs. Specifically, it seeks to reinstate the tax incentive for brownfield remediation expenses for costs incurred after December 31, 2028. The bill was introduced in the House of Representatives on January 28, 2025, and referred to the Committee on Ways and Means.
Expected Effects
The bill's passage would allow businesses to deduct expenses related to cleaning up brownfield sites, potentially encouraging redevelopment of these contaminated areas. This could lead to increased investment in economically distressed areas and promote environmental cleanup. The tax incentive would be available for expenses incurred after December 31, 2028.
Potential Benefits
- Encourages redevelopment of contaminated brownfield sites.
- Stimulates economic activity and investment in distressed areas.
- Promotes environmental cleanup and reduces health risks associated with contaminated land.
- Potentially increases property values and tax revenues for local governments.
- Could lead to the creation of new jobs in construction, environmental remediation, and related industries.
Potential Disadvantages
- Potential for increased budget deficits due to tax deductions.
- May disproportionately benefit larger corporations with the resources to undertake brownfield redevelopment projects.
- Could incentivize development in areas that are not otherwise economically viable, leading to inefficient resource allocation.
- The delayed effective date (after 2028) may reduce its immediate impact.
- Potential for unintended consequences if the definition of 'environmental remediation costs' is not clearly defined, leading to loopholes or abuse.
Constitutional Alignment
The bill aligns with the General Welfare Clause of the Constitution (Preamble), which allows Congress to enact laws that promote the well-being of the nation. Article I, Section 8, Clause 1 grants Congress the power to lay and collect taxes, duties, imposts, and excises, to pay the debts and provide for the common defense and general welfare of the United States. This bill falls under Congress's power to tax and spend for the general welfare by incentivizing environmental cleanup and economic development.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).