I 
109TH CONGRESS 
1ST SESSION H. R. 4480 
To amend the Internal Revenue Code of 1986 to provide tax incentives 
for the remediation of contaminated sites. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 8, 2005 
Mr. TURNER (for himself, Mr. ENGLISH of Pennsylvania, Mr. BOEHNER, Mr. 
GILLMOR, Mr. TIBERI, Mr. SHAYS, Mr. LATOURETTE, Mr. HOBSON, Mr. 
NEY, Ms. HART, Mr. REGULA, Ms. PRYCE of Ohio, Mr. GERLACH, Mr. 
KLINE, Mrs. JONES of Ohio, Mr. OXLEY, and Mrs. JOHNSON of Con-
necticut) introduced the following bill; which was referred to the Com-
mittee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
tax incentives for the remediation of contaminated sites. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘America’s Brownfield 
Cleanup Act’’.
SEC. 2. CREDIT FOR EXPENDITURES TO REMEDIATE CON-
TAMINATED SITES. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to business related credits) is amended by 
adding at the end the following new section: 
‘‘SEC. 45N. ENVIRONMENTAL REMEDIATION CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 38, the 
environmental remediation credit determined under this 
section is 50 percent of the qualified remediation expendi-
tures paid or incurred by the taxpayer during the taxable 
year with respect to a qualified contaminated site located 
in an eligible area. 
‘‘(b) QUALIFIED REMEDIATION EXPENDITURES.— 
For purposes of this section, the term ‘qualified remedi-
ation expenditures’ means expenditures, whether or not 
chargeable to capital account, in connection with— 
‘‘(1) the abatement or control of any hazardous 
substance at the qualified contaminated site in ac-
cordance with an approved remediation plan, 
‘‘(2) the demolition of any structure (or portion 
thereof) on such site if any portion of such structure 
is demolished in connection with such abatement or 
control,
‘‘(3) the removal and disposal of property in 
connection with the activities described in para-
graphs (1) and (2), and 
‘‘(4) the reconstruction of utilities in connection 
with such activities. 
Such term includes the cost of financial assurances (in-
cluding bonding) and insurance described in subsection 
(g)(4). 
‘‘(c) QUALIFIED CONTAMINATED SITE.—For pur-
poses of this section— 
‘‘(1) IN
GENERAL.—The term ‘qualified con-
taminated site’ means any area— 
‘‘(A) which is an eligible response site as 
defined in section 101(41) of the Comprehen-
sive Environmental Response, Compensation, 
and Liability Act of 1980, 
‘‘(B) which is held by the taxpayer for use 
in a trade or business or for the production of 
income, or which is property described in sec-
tion 1221(a)(1) in the hands of the taxpayer, 
‘‘(C) at or on which there has been a re-
lease (or threat of release) or disposal of any 
hazardous substance, and
‘‘(D) with respect to which an approved re-
mediation plan and an approved redevelopment 
plan are both in effect. 
‘‘(2) NATIONAL PRIORITIES LISTED SITES NOT 
INCLUDED.—Such term shall not include any site 
which is on, or proposed for, the national priorities 
list under section 105(a)(8)(B) of the Comprehen-
sive Environmental Response, Compensation, and 
Liability Act of 1980 (as in effect on the date of the 
enactment of this section). 
‘‘(d) HAZARDOUS SUBSTANCE.—For purposes of this 
section— 
‘‘(1) IN GENERAL.—The term ‘hazardous sub-
stance’ means— 
‘‘(A) any substance which is a hazardous 
substance as defined in section 101(14) of the 
Comprehensive Environmental Response, Com-
pensation, and Liability Act of 1980, 
‘‘(B) any substance which is designated as 
a hazardous substance under section 102 of 
such Act, and 
‘‘(C) any petroleum product (within the 
meaning of section 4612(a)(3)). 
‘‘(2) EXCEPTION.—Such term shall not include 
any substance with respect to which a removal or re-
medial action is not permitted under section 104 of 
such Act by reason of subsection (a)(3) thereof. 
‘‘(e) APPROVED REMEDIATION PLAN.—For purposes 
of this section, the term ‘approved remediation plan’ 
means, with respect to any site, any plan for the conduct 
of the activities described in paragraphs (1) through (4) 
of subsection (b)— 
‘‘(1) which is approved by a State environ-
mental agency— 
‘‘(A) pursuant to a response program 
which includes each of the elements listed in 
section 128(a)(2) of the Comprehensive Envi-
ronmental Response, Compensation, and Liabil-
ity Act of 1980, and 
‘‘(B) after a determination by such agency 
that the plan provides for the abatement or 
control of the hazardous substances at such 
site, and 
‘‘(2) which includes a written statement from 
such agency that such site meets the requirements 
of paragraphs (1)(A), (1)(C), and (2) of subsection 
(c). 
‘‘(f) APPROVED REDEVELOPMENT PLAN.—For pur-
poses of this section, the term ‘approved redevelopment 
plan’ means, with respect to any site, any plan for the
redevelopment of such site which is approved by the State 
development agency after a determination by such agency 
that the plan provides for the redevelopment of such site 
in a manner beneficial to the State and local economy and 
to the local community generally. 
‘‘(g) CREDIT MAY NOT EXCEED ALLOCATION.— 
‘‘(1) IN GENERAL.—The environmental remedi-
ation credit determined under this section with re-
spect to any qualified contaminated site shall not ex-
ceed the credit amount allocated under this section 
by the State development agency to the taxpayer 
with respect to such site. 
‘‘(2) TIME FOR MAKING ALLOCATION.—An allo-
cation shall be taken into account under paragraph 
(1) for any taxable year only if made before the 
close of the calendar year in which such taxable year 
begins. 
‘‘(3) MANNER OF ALLOCATION.— 
‘‘(A) ALLOCATION MUST BE PURSUANT TO 
PLAN.—No amount may be allocated under this 
subsection to any qualified contaminated site 
unless— 
‘‘(i) an approved remediation plan and 
an approved redevelopment plan are both 
in effect with respect to such site, and
‘‘(ii) such amount is allocated pursu-
ant to a qualified allocation plan of the 
State development agency. 
‘‘(B) QUALIFIED ALLOCATION PLAN.—For 
purposes of this paragraph, the term ‘qualified 
allocation plan’ means any plan— 
‘‘(i) which sets forth selection criteria 
to be used to determine priorities of the 
State development agency in allocating 
credit amounts under this section, and 
‘‘(ii) which gives preference in allo-
cating credit amounts under this section to 
qualified contaminated sites based on— 
‘‘(I) the extent of poverty, 
‘‘(II) whether the site is located 
in an empowerment zone, enterprise 
community, or renewal community, 
‘‘(III) whether the site is located 
in the central business district of the 
local jurisdiction, 
‘‘(IV) the extent of the required 
environmental remediation, 
‘‘(V) the extent of the commer-
cial, industrial, or residential redevel-
opment of the site in addition to envi-
ronmental remediation, 
‘‘(VI) the extent of the financial 
commitment to such redevelopment, 
‘‘(VII) the amount of new em-
ployment expected to result from such 
redevelopment, and 
‘‘(VIII) whether it is reasonably 
expected that under the approved re-
mediation plan at least 25 percent of 
the estimated total qualified remedi-
ation expenditures will be borne by 
one or more persons who are poten-
tially liable under section 107(a) of 
the Comprehensive Environmental Re-
sponse, Compensation, and Liability 
Act of 1980. 
‘‘(4) STATES
MAY
IMPOSE
OTHER
CONDI-
TIONS.—Nothing in this section shall be construed 
to prevent any State from requiring— 
‘‘(A) assurances, including bonding, that 
any project for which a credit amount is allo-
cated under this section will be properly com-
pleted or that the financial commitments of the 
taxpayer are actually carried out,
‘‘(B) that the taxpayer obtain insurance 
which reimburses qualified remediation expendi-
tures in excess of the total estimated amount of 
such expenditures, or 
‘‘(C) that the taxpayer obtain insurance 
covering liability for personal injury, death, or 
property damage. 
‘‘(h) STATE ENVIRONMENTAL REMEDIATION CREDIT 
CEILING.—For purposes of this section— 
‘‘(1) 
LIMITATION.—The 
aggregate 
credit 
amounts allocated by the State development agency 
during any calendar year shall not exceed the State 
environmental remediation credit ceiling applicable 
to such State for such calendar year. 
‘‘(2) 
DETERMINATION
OF
LIMITATION 
AMOUNT.—The State environmental remediation 
credit ceiling applicable to any State for any cal-
endar year shall be an amount equal to the sum of— 
‘‘(A) such State’s share of the national en-
vironmental remediation credit limitation for 
the calendar year, 
‘‘(B) the unused State environmental re-
mediation credit ceiling (if any) of such State 
for the calendar year,
‘‘(C) the amount of State environmental 
remediation credit ceiling returned in the cal-
endar year, plus 
‘‘(D) the amount (if any) allocated under 
paragraph (5) to such State by the Secretary. 
‘‘(3) NATIONAL ENVIRONMENTAL REMEDIATION 
CREDIT LIMITATION.— 
‘‘(A) IN GENERAL.—The national environ-
mental remediation credit limitation for each 
calendar year is $1,000,000,000. 
‘‘(B) STATE’S SHARE OF LIMITATION.—A 
State’s share of such limitation is the amount 
which bears the same ratio to the limitation ap-
plicable under subparagraph (A) for the cal-
endar year as such State’s population bears to 
the population of the United States. 
‘‘(4) UNUSED STATE ENVIRONMENTAL REMEDI-
ATION CREDIT CEILING.—The unused State environ-
mental remediation credit ceiling for any calendar 
year is the excess (if any) of— 
‘‘(A) the State environmental remediation 
credit ceiling applicable to the State for the pre-
ceding calendar year (determined without re-
gard to paragraph (2)(B)), over