Brownfield Program

What are Brownfields?

Brownfields are industrial or commercial properties which have been abandoned or under utilized as a result of hazardous substance contamination. While these properties have an enormous potential for economic development, they have failed to attract the private market because of the liability associated with the brownfields and the potential costs involved with their cleanup.

Voluntary Cleanup Program?

While the developers’ fear of liability may be allayed through their participation in the Voluntary Cleanup Program (VCP), site acquisition, cleanup and redevelopment may still be delayed because of financial shortfalls. Obtaining funds to support expensive cleanups is a challenge as contamination often scares away traditional funding sources; the Brownfields program helps investors and developers face this challenge successfully.

Brownfields Legislation

Senator David B. McBride and Representative Jeffrey H. Mack sponsored legislation to provide incentives to the business community to purchase, clean up and redevelop abandoned industrial and commercial sites. This legislation was passed by both the Senate and the House and signed into law on July 13, 1995.

Streamlined Cleanup

Senate Bill 40 amended Delaware’s Hazardous Substance Cleanup Act to entice more parties to enter into voluntary agreements with DNREC for recycling brownfield sites. It eliminates liability concerns of prospective purchasers and developers who undertake the cleanup of contaminated properties with DNREC oversight, provides streamlined cleanup agreements and creates greater flexibility to facilitate cleanup of sites.

Tax Credit

Senate Bill 41 provides new corporate tax credits to businesses for cleanup and redevelopment in a brownfield and provides reduction in gross receipts tax for qualified businesses engaged in brownfield redevelopment.

Financial Assistance

Recognizing the need to combat the financial troubles plaguing brownfields, a grant was established under the administration of the Delaware Economic Development Office (DEDO) to offset a portion of the costs associated with the investigation of these properties. Under the Brownfields Assistance Program, matching grants will be made available to conduct investigations of properties that meet certain criteria.

Money Available

Up to $25,000 or fifty percent of the total projected costs (whichever is less) will be available to eligible projects.

Eligibility Criteria

Funds must be used to conduct investigations of vacant, unoccupied or under utilized sites which are suspected of contamination due to prior commercial or industrial use. These properties must possess the ability to maintain, expand or diversify business or industry within the State and/or to maintain or increase the State tax base. Any private sector party located in Delaware may apply for assistance. Financing will not be available for routine environmental assessments which are deemed a normal and ordinary part of real estate transactions.

Consultant Qualifications
Lab Qualifications

Contact:
For More Information On The Brownfields Program

Delaware Department of Natural Resources and Environmental Control
Site Investigation and Restoration Branch
391 Lukens Drive
New Castle, DE 19720
Phone: 302-395-2600

e-mail - Christina.Wirtz@state.de.us

Delaware Economic Development Office
99 Kings Highways
Dover, DE 19901
(302) 739-4271

Delaware Department of Finance Division of Revenue
820 North French Street
Wilmington, DE 19801
(302) 577-3322

The following documents are available to help you better understand the requirements and guidelines for the tax credit and grants under the Brownfield Program.

All of the following documents are in the .zip format and will require pkunzip (DOS Version) or pkunzip (Windows Version) for unzipping. Once unzipped, these files are in MS Word for Windows© format. To view and print these documents you will need a copy of MS Word for Windows© or use the Microsoft®.
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Brownfield Loan Program
Tax-Credit ( tax forms and guidance )
Matching grant from DEDO ( grant application and rules )