New Federal Bill Would Piggyback Investment Incentives for Contaminated Sites onto Federal OZ Law

A new bipartisan Bill, the Economic Opportunity for Distressed Communities Act, aims to bring fresh investment to contaminated properties by allowing Superfund and brownfield sites to qualify as Opportunity Zones. Introduced by Reps. Jasmine Crockett (D-TX) and Chuck Edwards (R-NC), this legislation would expand tax incentives to investors willing to take on the cleanup and redevelopment of environmentally contaminated properties.

The Federal Opportunity Zone program has been a valuable tool for driving investment into distressed communities, but it didn’t specifically account for sites burdened by hazardous waste or industrial contamination. With an estimated 450,000 brownfield sites and 1,300+ Superfund sites nationwide, this Bill could create a pathway for revitalizing long-overlooked properties—turning liabilities into productive assets.

For Ohio commercial developers, this legislation could mean new tax deferral opportunities for capital gains invested in Qualified Opportunity Funds. If passed, it could help unlock new sites for development, increase property values, and create economic growth in areas previously languishing due to environmental challenges. We’ll keep you appraised of the progress of this exciting new Bill.