(The Center Square) – Redevelopment and revitalization of environmentally challenged properties would be helped by the Economic Opportunity for Distressed Communities Act, a federal proposal by a Republican and Democrat from North Carolina.
U.S. Reps. Chuck Edwards and Wiley Nickel say their plan is different from the current Opportunity Zone program that focuses solely on low-income communities and fails to consider the need for similar investment in communities with additional hardships, such as brownfield and superfund sites. They worked together to craft House Resolution 9203, an act that would amend the Internal Revenue Code of 1986 “to establish special rules for capital gains invested in brownfield and superfund sites.”
“I have heard from numerous constituents who are interested in developing environmentally challenged properties but decided not to because there isn’t enough incentive,” Edwards, the Republican representative of the 9th Congressional District, said in a release. “Due to superfund and brownfield sites’ contamination, many locations with potential sit unoccupied for years. Brownfields and superfund sites have the viability to be redeveloped into new housing or business space, and promoting cleanup and development of these sites will create jobs, business opportunities and increase property values for western North Carolina and nationwide.”
Properties with hazardous waste, pollutants or other contaminants are colloquially known as brownfields and superfund sites. The contamination increases the likelihood developers will not purchase them. Prices for them fall while cleanup and redevelopment costs rise.
In a release, 13th Congressional District Democrat Nickel said, “This commonsense bill will help revitalize key areas in our communities. By expanding the opportunity zone tax credit to include previously developed land abandoned after industrial use, we’ll ensure these sites are cleaned up and rehabilitated, paving the way for new economic development. This tax credit will bring significant benefits to the people of North Carolina, foster further growth in rapidly expanding areas, and provide a major boost to our economy.”
Endorsements are in tow from the National Association of Realtors, the National Association of Home Builders and the Institute of Real Estate Management.
The Environmental Protection Agency’s National Priorities List includes more than 1,300 superfund sites and more than 450,000 brownfield sites.
