Relates to the brownfield redevelopment tax credit; provides that in the event that the qualified site is owned by, or was acquired by a taxpayer from, a municipality and such municipality is a volunteer under the brownfield site clean-up agreement with respect to such qualified site, then the amount of the credit shall be reduced; defines "infrastructure work"; makes related amendments.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3607
SPONSOR: Pretlow TITLE OF BILL:
An act to amend the tax law, in relation to brownfield redevelopment tax
credit
PURPOSE:
This bill would provide an alternative funding mechanism to munici-
palities to encourage the cleanup of brown fields throughout the state.
SUMMARY OF PROVISIONS:
Section 1: subdivision (a) of section 21 of the tax law, as amended by
section 1 of part H of chapter. 577 of the laws of 2004, paragraph 1 as
amended by section 39 of part A of chapter 59 of the laws of 2014,
Section 2: Paragraph 3 of subdivisions (b)of section 21 of the tax law,
as amended by chapter 420 of the laws of 2006 Section 3: Effective
date:
JUSTIFICATION:
New York State enacted the brownfield redevelopment program to encourage
the cleanup and development of environmentally contaminated sites
throughout the state,. To provide an incentive for developers to partic-
ipate, a brownfield redevelopment tax credit was provided which consists
of the following 3 components - site preparation costs, costs of tangi-
ble personal property, and on-site groundwater remediation costs.
As participation in the program increases, there may be circumstance in
which a municipality may incur certain costs relation to preparation and
remediation. Under current law, these costs would be borne directly by
the locality. This proposal would provide. an incentive to a munici-
pality, if they choose to participate, to qualify for a reimbursement of
the specified costs they may incur in brownfield redevelopment. This
legislation would encourage localities throughout the State to increase
their investment in cleaning up and developing environmentally contam-
inated sites.
LEGISLATIVE HISTORY:
A1892 2021-2022 referred to ways & means
A2666 2019-2020 referred to ways & means
A1780 2017/2018 referred to ways and means
A 3618 2013-14 referred to ways & means new bill.
01/07/15 referred to ways and means
01/06/16 referred to ways and means
FISCAL IMPLICATIONS:
Because the reimbursement is offset directly by a reduction in the tax
credit, this bill would have no impact on the financial plan.
EFFECTIVE DATE:
This act shall take effect immediately, and shall apply to all qualified
sites from the date on which the brownfield site clean-up agreement with
respect to such qualified site was entered into, including without limi-
tation those brownfield site clean-up agreements entered into prior to
the date hereof.
