I
104TH CONGRESS
2D SESSION
H. R. 2846
To amend the Internal Revenue Code of 1986 to allow a credit for the
cleanup of certain contaminated industrial sites and to allow the use
of tax-exempt redevelopment bonds for such cleanup.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 4, 1996
Mr. COYNE introduced the following bill; which was referred to the Committee
on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to allow a
credit for the cleanup of certain contaminated industrial
sites and to allow the use of tax-exempt redevelopment
bonds for such cleanup.
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 ‘‘Brownfields Redevelop-
ment Act of 1996’’.
SEC. 2. ENVIRONMENTAL REMEDIATION TAX CREDIT.
(a) GENERAL RULE.—Part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 (relating
to credits allowable) is amended by adding at the end
thereof the following new subpart:
‘‘Subpart H—Environmental Remediation Credit
‘‘Sec. 54. Amount of environmental remediation credit.
‘‘Sec. 54A. Definitions and special rules.
‘‘SEC. 54. AMOUNT OF ENVIRONMENTAL REMEDIATION
CREDIT.
‘‘(a) GENERAL RULE.—For purposes of section 38,
the environmental remediation credit determined under
this section is 50 percent of the costs—
‘‘(1) which are paid or incurred by the taxpayer
for environmental remediation with respect to any
qualified contaminated site which is owned by the
taxpayer, and
‘‘(2) which are incurred by the taxpayer pursu-
ant to an environmental remediation plan for such
site which was approved by the Administrator of the
Environmental Protection Agency or by the head of
any State or local government agency designated by
the Administrator to carry out the Administrator’s
functions under this subpart with respect to such
site.
‘‘(b) REMEDIATION PLAN MUST BE COMPLETED.—
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in paragraph (2)—
‘‘(A) no environmental remediation credit
shall be determined under this section with re-
spect to any qualified contaminated site unless
the Administrator of the Environmental Protec-
tion Agency (or such Administrator’s designee
under subsection (a)(2)) certifies the environ-
mental remediation plan for such site has been
completed, and
‘‘(B) if such Administrator (or designee)
certifies that such plan has been completed,
such credit shall be taken into account under
subsection (a) ratably over the 5 taxable year
period beginning with the taxable year in which
such plan was completed.
‘‘(2) SPECIAL
RULE
WHERE
EXTRAORDINARY
COST INCREASES.—If—
‘‘(A) the taxpayer determines that due to
unforeseen circumstances the cost of completing
the remediation plan for any qualified contami-
nated site exceeds 200 percent of the estimated
costs of completing such plan, and
‘‘(B) the State or local official administer-
ing the remediation credit program agrees with
such determination,
the taxpayer may cease the implementation of such
plan and shall be entitled to an environmental reme-
diation credit with respect to costs incurred before
such cessation. Such credit shall be taken into ac-
count under subsection (a) ratably over the 5-tax-
able-year period beginning with the taxable year in
which such cessation occurs.
‘‘(c) CERTAIN PARTIES NOT ELIGIBLE.—A taxpayer
shall not be eligible for any credit determined under this
section with respect to any qualified contaminated site if—
‘‘(1) at any time on or before the date of the
enactment of this subpart, such taxpayer was the
owner or operator of any business on such site,
‘‘(2) at any time before, on, or after such date
of enactment such taxpayer—
‘‘(A) had (by contract, agreement, or oth-
erwise) arranged for the disposal or treatment
of any hazardous materials at such site or ar-
ranged with a transporter for transport for dis-
posal or treatment of any hazardous materials
at such site, or
‘‘(B) had accepted any hazardous mate-
rials for transport to such site, or
‘‘(3) the taxpayer is related to any taxpayer re-
ferred to in paragraph (1) or (2).