State and federal incentive programs exist that can make the purchase and redevelopment of a Brownfield site a good economic opportunity for many businesses. These incentive programs exist because Brownfield redevelopment can promote general economic health by reducing environmental hazards, cleaning up neighborhood eyesores, creating jobs, boosting tax revenue, and so on.
Brownfield sites are abandoned, idled or underutilized industrial or commercial properties where real or perceived environmental contamination prevents productive expansion or redevelopment. Examples of Brownfield sites include former gas stations, dry cleaners, and other commercial operations that may have utilized products or materials potentially hazardous to the environment.
Grayfield sites are abandoned public buildings, industrial or commercial properties that are vacant, blighted, obsolete, or otherwise underutilized. A grayfield has been developed and has infrastructure in place but the property's current use is outdated or prevents a better or more efficient use of the property. Iowa law defines a grayfield as having improvements and infrastructure that are at least 25 years old and one or more of the following conditions exists:
- Thirty percent or more of a building located on the property that is available for occupancy has been vacant or unoccupied for a period of twelve months or more.
- The assessed value of the improvements on the property has decreased by twenty-five percent or more.
- The property is currently being used as a parking lot.
- The improvements on the property no longer exist.
Redevelopment Tax Credit Program
Type of Benefit:
- Tax credits of up to 24% for qualifying costs of a Brownfield project and 30% if the project meets green building requirements.
- Tax credits of up to 12% of qualifying costs of a Grayfield project and 15% if the project meets green building requirements.
Tax credits are available on an annual basis, with a maximum tax credit per project of $1,000,000 and a $10,000,000 maximum for each fiscal year. An audit of qualifying expenses from an independent Iowa certified public accountant is required prior to issuance of all tax credit certificates.
How to Apply:
Applications are accepted on an annual basis during the months of July and August with a September 1 deadline. Application can be made online only
at the Tax Credit Award Claim & Transfer Administration System web at https://taxcredit.iowa.gov/
Click on “View Details” under “The Redevelopment Tax Credit Program for Brownfields or Grayfields”. At the top of the “Sign In” page you will either need to click on “Create An Account” (if you don’t already have an account there) or sign in using your account ID and password.
For assistance signing into the system, filling out the application, or other program questions contact Program Manager Matt Rasmussen at 515-725-3126 or email@example.com
Brownfield Quick Reference Resources
To learn more: