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To amend the Internal Revenue Code of 1986 to extend expensing of environmental remediation costs.
1/29/2025, 9:20 AM
Summary of Bill HR 815
The bill is designed to encourage businesses to take responsibility for cleaning up environmental hazards and promoting environmental sustainability. By allowing companies to deduct these costs from their taxes, it incentivizes them to invest in remediation efforts, ultimately leading to cleaner and safer environments for communities.
If passed, this bill would have a positive impact on the environment by encouraging businesses to proactively address environmental contamination issues. It would also provide economic benefits by potentially creating jobs in the environmental remediation industry. Overall, Bill 119 HR 815 seeks to promote environmental responsibility among businesses while also providing economic incentives for investing in environmental cleanup efforts.
Congressional Summary of HR 815
Brownfields Redevelopment Tax Incentive Reauthorization Act of 2025
This bill temporarily reinstates the election to expense environmental remediation costs paid or incurred in connection with the cleanup of certain business property (also known as the brownfields redevelopment tax incentive). (The election to expense allows a taxpayer to deduct such costs in the year incurred rather than treat such costs as capital expenses that are depreciated over a period of time.)
The brownfields redevelopment tax incentive allows a taxpayer to elect to expense costs that would otherwise be capitalized and are paid or incurred before 2012 in connection with the abatement or control of a hazardous substance on property (1) used in a trade or business, (2) for the production of income, or (3) held by the taxpayer primarily for sale in the ordinary course of a trade or business. (Some limitations apply.)
Under the bill, a taxpayer may elect to expense such environmental remediation costs paid or incurred in 2025-2028.
