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Any reduced costs associated with developing in an area where infrastructure already exists may be off-set by increased cost to remediate a contaminated site. There may be ways to recover a portion of these remediation costs.

State Resources

The Hazardous Discharge Site Remediation Fund grant program was created July 1993 to fund investigation of brownfield sites. This fund includes a municipal grant program and a low interest loan program. This funding has been used to conduct environmental assessments and remedial actions prior to development. Please see the HDSRF Grants and loans chart for more information.

The New Jersey Environmental Infrastructure Trust is another public funding source available for brownfield remediation and redevelopment if the end use will, in some way, improve water quality. The mission of the Environmental Infrastructure Trust is to provide and administer low interest rate loans to New Jersey's municipalities, counties, and regional authorities for the purpose of financing water quality infrastructure projects that improve the State's natural resources and protect the public health. Brownfield remediation projects are eligible for loans at one-quarter or one-half of the market rate. The Environmental Infrastructure Trust does permit the developer to participate in the loan process.

The New Jersey Economic Development Authority administers several funding programs that may be used for brownfield redevelopment projects, including the Economic Redevelopment and Growth (ERG) Program. The ERG program can fund an incentive grant of up to 75% of the annual incremental State Tax and/or Local Tax revenue for development projects in Planning Area 1 (Metropolitan), Planning Area 2 (Suburban) or a center designated under the State Development and Redevelopment Plan; a Pinelands regional growth area, Pinelands town management area, a Pinelands village, or a federal installation area established pursuant to the Pinelands comprehensive management plan; a transit village (local incentive grants only), or federally owned land approved for closure by the federal Base Realignment Closing Commission.

The New Jersey Economic Development Authority administers several other funding programs that may be used for brownfield redevelopment projects. These programs include funding for building construction, business attraction and start-up, business growth, commercial real estate development, clean energy solutions, business growth, employment incentives, business retention and relocation, landfill closure and remediation and other economic activities.

Federal Resources

The United State Environmental Protection Agency's Brownfields Program provides direct funding for brownfield assessment, cleanup, revolving loans, and environmental job training. To facilitate the leveraging of public resources, EPA's Brownfields Program collaborates with other Environmental Protection Agency programs, other federal partners, and state agencies to identify and make available resources that can be used for brownfield activities. In addition to direct brownfield funding, EPA also provides technical information on brownfield financing matters.

The EPA has published A Guide to Federal Tax Incentives for Brownfields Redevelopment and a Brownfields Federal Programs Guide.

The United States Internal Revenue Code (income tax) has provided and may currently provide for expensing of environmental remediation costs. This provision is commonly referred to as the Federal Brownfield Tax Incentive. This and other incentives may be found by querying the search engine on the Internal Revenue Service web site for environmental remediation costs. Please consult a federal tax expert for accurate and current information.

It is the stated mission of the United States Economic Development Administration (USEDA) to lead the federal economic development agenda by promoting innovation and competitiveness, preparing American regions for growth and success in the worldwide economy. USEDA has established the following investment priorities: Collaborative Regional Innovation, Public/Private Partnerships, National Strategic Priorities, Global Competitiveness, Environmentally-Sustainable Development, and, Economically Distressed and Underserved Communities. Successful brownfield redevelopment projects support all of these priorities.