NYS Brownfield Cleanup Program Amendments
The New York State Brownfield Cleanup Program (NYSBCP) has been a means to encourage the cleanup and redevelopment of privately owned sites across the state in an effort to promote the revitalization of economically and environmentally blighted areas. The benefit of tax credits to developers who purchase brownfield sites has now been officially extended for 10 years, to December 2032. Developers can benefit from this new extension as long as the New York State Department of Environmental Conservation (NYSDEC) issues a Certificate of Completion (COC) for their project no later than December 31, 2036.
The extension of the NYSBCP is one of several new changes to the program. Other changes include:
- As of April 2022, accepted applicants must submit a nonrefundable $50,000 fee with their signed Brownfield Cleanup Agreement (BCA), though applicants can request a waiver to the application fee if they can prove a hardship. Project costs can only be included in a site’s tax credit calculations after a BCA is signed by the applicant and the NYSDEC.
- Sites that received a COC between July 1, 2015 and June 24, 2021 are allowed to claim certain tax credits regarding site preparation and on-site groundwater remediation costs. These claims can be made up to seven years after the COC is issued.
- Sites that were accepted into the BCP between July 1, 2015 and June 24, 2021 can now include site preparation costs that were incurred to comply with the COC for up to 84 months after the COC is issued in their tax credit calculations.
- Track 1 clean-up sites containing features such as stadiums, baseball parks, athletic facilities, etc., can claim such improvements as “buildings”. Components such as turf, lighting, entryways, etc., are considered structural components of “buildings” and are therefore considered tangible property.
- In New York City tangible tax credits are available to sites that meet the following criteria:
- Disadvantaged communities in Brownfield Opportunity Area sites,
- Renewable energy facility sites, and
- Affordable housing developments.
- Additional tangible tax credit “bumps” are also available for certain sites located in disadvantaged communities and for renewable energy sites.
- Sites that were shut down or affected by the COVID-19 pandemic can now request to extend the time to place properties into service from 10 to 12 years. This applies to sites with COCs issued between March 20, 2010 and December 31, 2011.
- For sites with COCs issued between March 20, 2010 and December 31, 2015, the time frame to place properties into service has been extended to 180 months, or 15 years after the date of the COC.
Walden has a team of engineering professionals that can assist in navigating the BCP process, from the investigation and application process to the Certificate of Completion. Please call us today at 516-744-5863 to get started on your project.