From the report:
How does contamination discourage redevelopment?
Redeveloping property is often time-consuming and costly, and contamination presents unique development challenges, particularly in terms of time, money, and predictability. For example, a developer does not know the nature and extent of a property’s contamination until there has been an investigation, and is liable for any contamination the investigation missed. Liability also extends to the developer’s lenders and investors. Further, the developer does not know the potential cleanup cost until the investigation ends. And remediation must meet state standards (the Remediation Standard Regulations). The level of cleanup varies depending on several factors, such as the intended reuse and location of the property.
How many brownfields are in Connecticut?
The Department of Energy and Environmental Protection (DEEP) estimates that there could be tens of thousands of sites in the state that are or may be polluted, which it attributes to Connecticut’s long industrial history. Not all of these sites are considered brownfields as they do not all satisfy the above definition. DEEP maintains an inventory of the 516 brownfields it has identified.
… How does the state encourage and help developers to clean up and redevelop brownfields?
Generally, the state encourages and helps developers clean up and redevelop brownfields by (1) relaxing the procedural requirements for investigating and remediating contamination; (2) reducing exposure to liability for contamination discovered after a property is properly investigated and remediated; and (3) providing grants, loans, and tax credits for cleanup and redevelopment costs.
Tax Incentives. Tax incentives are a standard tool states use to encourage certain activities, including brownfield remediation. Tax credits for redeveloping brownfields and other property are available under two DECD-administered programs: the (1) Urban and Industrial Sites Reinvestment Tax Credit Program, which provides up to $100 million in tax credits, over a 10-year period, for projects that create significant jobs and capital investment in the state’s urban centers and other economically distressed communities and (2) 7/7 Program, which, for brownfield projects, provides 14 years of business or personal income tax and sales and use tax credits. The 7/7 program also allows the property’s tax assessment to be frozen for five years at the predevelopment assessed value.