H.R. 5472: Brownfield Revitalization and Remediation Act

This bill, titled the Brownfield Revitalization and Remediation Act, aims to modify the Internal Revenue Code to improve tax benefits associated with environmental remediation efforts. Here’s a breakdown of the main components:

1. Restoration of Expensing for Environmental Remediation

The bill seeks to restore the ability to immediately deduct certain qualified environmental remediation expenditures for tax purposes. This restoration applies to expenditures that occurred after December 31, 2011, and before January 1, 2025, and also those occurring after December 31, 2029. In essence, this means that businesses would be able to recover costs more quickly for cleanup efforts related to contaminated sites.

2. Expansion of Qualified Expenses

The bill expands what qualifies as deductible expenses under tax law in relation to environmental remediation. Key expansions include:

• Inclusion of Assessment and Investigation Costs: The bill allows for the expensing of reasonable costs associated with assessing, investigating, and monitoring sites that require cleanup.
• Special Rules for Brownfield Sites: It introduces specific tax treatment for certain properties known as brownfield sites, which are previously used lands that may be polluted and require cleanup before they can be redeveloped.
• Definition of Contaminants: The bill clarifies that substances deemed as pollutants or contaminants are treated as hazardous substances, which will affect how businesses account for these materials during remediation.

3. Effective Date

The changes proposed by this bill would take effect on the date the legislation is signed into law.

Relevant Companies

• DE (Deere & Company) - Potentially impacted due to its involvement in land and property that may require environmental remediation.
• SYK (Stryker Corporation) - Might be affected if their facilities have any contamination requiring remediation.
• CAG (Conagra Brands, Inc.) - May experience impacts if their sites are involved in environmental cleanup projects.