South Asheville News

U.S. Congressman Chuck Edwards (NC-11) introduced the Economic Opportunity for Distressed Communities Act today to designate all Superfund and brownfield areas as Opportunity Zones, aiming 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 contamination, developers and investors are often hesitant to purchase them despite the typically lower land costs. Cleanup, redevelopment costs, and time delays are significant barriers.

The Tax Cuts and Jobs Act of 2017 established the Opportunity Zone tax incentive as an economic development tool to spur growth and job creation in distressed communities across the United States. Designation as an Opportunity Zone allows investors to defer tax on capital gains if those gains are invested in a Qualified Opportunity Fund within 180 days.

The current Opportunity Zone program focuses solely on low-income communities, overlooking areas with additional hardships like brownfield and Superfund sites that 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 stated: “The Economic Opportunity for Distressed Communities Act is a logical extension of Opportunity Zones 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,” said the National Association of REALTORS®. “This legislation would enhance the Opportunity Zone tax initiative by adding properties that are environmentally challenged such as Superfund and brownfield sites.” The association added: "We believe adding this category is fully congruent with the spirit and intent of the original legislation."

In the United States, there are more than 1,300 Superfund sites on the Environmental Protection Agency’s National Priorities List due to known hazardous substances' presence along with over 450,000 brownfield sites.

Endorsements:

National Association of REALTORS®

National Association of Home Builders

Institute of Real Estate Management