Brownfields in Mississippi

A brownfield is defined as, under certain legal exclusions and additions, real property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant.  Cleaning up and reinvesting in these properties takes development pressures off of undeveloped, open land, and both improves and protects the environment.  The process, generally, is one of assessment of the property, followed by remediation and restoration, and ending with reuse.  The goal of this process it is the ultimate determination by the EPA or MDEQ that “no further action” of remediation or restoration is necessary.  The Mississippi Brownfields Voluntary Cleanup and Redevelopment Incentives Act, Miss. Code Ann. § 49-35-1 et seq., provides incentives for cleanup and redevelopment of brownfields. Under this law, remediation costs paid for the assessment, investigation, remediation, monitoring, and related activities at a brownfield agreement site are eligible for at 25% tax credit for the tax year in which the costs are incurred.  The annual credit cannot exceed the lesser of $40,000.00 or the amount of the income tax imposed upon the brownfield party at the brownfield agreement site for the taxable year as reduced by the sum of all other credits allowable to the brownfield party, except for credit for tax payments made by or on behalf of the brownfield party.  Any unused portion of the credit may be carried forward for succeeding tax years.  The maximum total credit over the life of the project is $150,000.00.  To receive the tax credit, you must obtain certification from the MDEQ that you are a brownfield party that has conducted remediation at a brownfield agreement site during the tax year for which the credit is sought.  To qualify as a brownfield party, you cannot be a potentially responsible party (“PRP”) or have caused the pollution in any way.