Palo Alto is considering buying property in California to build its corporate headquarters. The land had previously been used by a manufacturing company, leaving the soil and groundwater contaminated with hazardous waste. In order to use the property for its needs, Palo Alto will pay environmental remediation costs to clean up the land. In addition to the $800,000 purchase price, Palo Alto estimates these environmental cleanup costs to be close to $300,000. If they buy the property, Palo Alto wants to deduct the full cost of the environmental repair on this year's taxes as a business or commercial expense. 

Can Palo Alto deduct environmental remediation costs from this year's taxes or should these costs be capitalized?