Kramer Levin provides a good summary of the program and its status.
Governor Cuomo’s FY 2022 Budget provides relief to participants in the New York State Brownfield Cleanup Program (BCP) that risk losing their Tangible Property Tax Credit due to pandemic-related and other delays.
Background on the BCP
The BCP provides state oversight, liability protection and tax incentives for the remediation and redevelopment of contaminated real property, known as brownfield sites. Hundreds of brownfield sites statewide have been remediated through the program. Sites that are accepted into the BCP are eligible for two different types of tax credits: a Site Preparation Tax Credit (covering remediation and other costs) and the more valuable Tangible Property Credit for redevelopment costs (covering the structures built on the site). Since the passage of legislation in 2015, sites in New York City must meet additional criteria to be eligible for the Tangible Property Credit. They must be located in an Environmental Zone (En-Zone) which is an area of high poverty or unemployment; have an associated cleanup cost that is 75% or more of the property value (so-called “upside down” properties); be “underutilized” per New York State Department of Environmental Conservation (NYSDEC) regulations; or be redeveloped for affordable housing.
Posted April 19, 2021