In a departure from his budget proposal, the New York governor agreed to changes to extend the tax credits for New York’s Brownfield Cleanup Program (BCP) with relatively modest changes to the BCP’s eligibility requirements. See L. 2015, ch. 56, pt. BB. The enacted bill, among other things, amends the BCP, Environmental Conservation Law Article 27, title 14, and the provisions of the Tax Law related to tax credits available under the program. The governor’s budget proposed limiting the lucrative “tangible property” tax credit, which is the credit based on a percentage of the cost of constructing a new development on a brownfield site, to (i) properties located in an environmental zone, (ii) properties to be used for affordable housing, or (iii) “upside down” properties—where the remediation of the property is projected to cost more than the value of the remediated property. Under the enacted bill, however, those limits (with modifications) will apply only to properties located in New York City. See pt. BB, § 3 (adding subdivision (1-a) to N.Y. Envtl. Conserv. Law § 27-1407). In other words, outside New York City, eligibility for the tangible property tax credit will remain available to all developers that otherwise qualify under the BCP, per existing law.
Premium Content For:
- Litigation Section