Joe Lieberman: “As my colleagues know, much has been done at both the national and State levels, including our own States, to help clean…”

“As my colleagues know, much has been done at both the national and State levels, including our own States, to help clean up contaminated brownfield properties. However, the Federal Tax Code contains a potential roadblock. Section 512 of the Internal Revenue Code establishes an unrelated business income tax, or UBIT, on the income that a tax-exempt entity derives from a trade or business that is not substantially related to its exempt purpose. The UBIT applies to gains from the sale or exchange of property held primarily for sale to customers in the ordinary course of such a trade or business. The UBIT also applies to gains from the sale or exchange of any debt-financed property. These UBIT provisions have reduced the economic attractiveness of investments in remediation and redevelopment of the nation's brownfield sites by tax-exempt entities like university endowments and private pension funds. According to the Chamber of Commerce, tax-exempt entities hold about $7 trillion in financial assets. This is a very large pot of money that could be tapped for brownfield cleanups.”