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.
What is a "Grayfield"?
Grayfield sites are 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 A grayfield has been developed and has infrastructure in place but the property's current use is outdated or prevents a better or more efficient use of the property.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.
Brownfield/Grayfield 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 a first come first served basis, with a maximum tax credit per project of $500,000 and a $5,000,000 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 a first come first served basis. Please download the current application in the Resources box below.
Brownfield Quick Reference Resources
To learn more: