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.
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.
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
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.