Edwards, Nickel introduce bill to revitalize distressed communities in North Carolina
U.S. Congressman Chuck Edwards (NC-11) today introduced the Economic Opportunity for Distressed Communities Act to designate all Superfund and brownfield areas as Opportunity Zones to encourage the redevelopment and revitalization of these environmentally challenged properties. Congressman Wiley Nickel (NC-13) is a co-lead of this bipartisan bill.
Brownfield and Superfund sites are properties that contain hazardous waste, pollutants or other contaminants. Due to the sites’ contamination, developers and investors are hesitant to purchase them. The land is typically cheaper, but significant cleanup, redevelopment costs and time delays are often present.
In 2017, the Tax Cuts and Jobs Act established the Opportunity Zone tax incentive as an economic development tool to spur economic growth and job creation in distressed communities across the United States. A site’s designation as an Opportunity Zone provides investors with the ability to defer tax on a capital gain if that gain is invested in a Qualified Opportunity Fund within 180 days of realizing the gain.
The current Opportunity Zone program 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, which face significant environmental burdens.
“I have heard from numerous constituents who are interested in developing environmentally challenged properties but decided not to because there isn’t enough incentive. Due to Superfund and brownfield sites’ contamination, many locations with potential sit unoccupied for years,” said Congressman Edwards. “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.”
“I’m proud to lead this bipartisan effort with my colleague from North Carolina, Rep. Chuck Edwards,” said Congressman Nickel. “This common-sense 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.”
The National Association of Home Builders said, “The Economic Opportunity for Distressed Communities Act is a logical extension of Opportunity Zones, which are designed to bring new investments to disadvantaged communities. NAHB is pleased to support this bill and commends Rep. Edwards for recognizing that environmental cleanup costs serve as a significant barrier to bringing new housing into economically distressed communities. With the nation facing a shortfall of 1.5 million housing units, this legislation will help builders produce sorely needed housing at affordable price points.”
“The National Association of REALTORS® is grateful to Representative Edwards for his leadership in introducing the Economic Opportunity for Distressed Communities Act. This legislation would enhance the Opportunity Zone tax initiative by adding to the program properties that are environmentally challenged, such as Superfund and brownfield sites,” said the National Association of REALTORS. "We believe adding this category to the economically challenged communities that the Opportunity Zone program presently targets is fully congruent with the spirit and intent of the original legislation. Our association knows firsthand how successful the development of these kinds of sites can be; NAR’s award-winning Washington, DC office is a Class ‘A’ modern, environmentally sustainable building that was completed on a reclaimed brownfield site in 2004.”
In the United States, there are more than 1,300 Superfund sites on the Environmental Protection Agency’s National Priorities List, the list of properties of national priority due to the known presence of hazardous substances, pollutants or contaminants, and more than 450,000 brownfield sites.
Endorsements
- National Association of REALTORS®
- National Association of Home Builders
- Institute of Real Estate Management