Brownfields Redevelopment Tax Incentive Reauthorization Act of 2025

Summary

Extends and changes the tax treatment of environmental cleanup (brownfields) costs so some remediation expenses can be deducted as current business expenses. The amendment makes expenditures paid or incurred after December 31, 2024 eligible for immediate expensing, but creates a gap so costs paid or incurred between January 1, 2025 and December 31, 2028 are not covered until the rule resumes after December 31, 2028.

• Modifies the tax code rule for expensing environmental remediation costs.
• Makes expenditures paid or incurred after Dec 31, 2024 eligible for immediate expensing.
• Creates a lapse for costs paid or incurred from Jan 1, 2025 through Dec 31, 2028 (not covered).
• Immediate-expensing treatment resumes for costs paid or incurred after Dec 31, 2028.
• Effective date applies to expenditures paid or incurred after Dec 31, 2024.
• Does not authorize new spending or impose new federal mandates on states.
• Affects developers, property owners, local governments, and communities engaged in brownfields cleanup and redevelopment.
• Changes are made by amending 26 U.S.C. §198(h).
• The bill is short and narrowly focused—only two sections: a short title and the tax amendment.