Bill Text: NY A01892 | 2021-2022 | General Assembly | Introduced
Bill Title: 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.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-01-05 - referred to ways and means [A01892 Detail]
Download: New_York-2021-A01892-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 1892 2021-2022 Regular Sessions IN ASSEMBLY January 11, 2021 ___________ Introduced by M. of A. PRETLOW -- read once and referred to the Commit- tee on Transportation AN ACT to amend the tax law, in relation to brownfield redevelopment tax credit The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraphs 1, 2, 4, 6 and 7 of subdivision (a) of section 2 21 of the tax law, as amended by section 1 of part H of chapter 577 of 3 the laws of 2004, paragraph 1 as amended by section 39 of part A of 4 chapter 59 of the laws of 2014, are amended to read as follows: 5 (1) General. A taxpayer subject to tax under article nine, nine-A, 6 twenty-two or thirty-three of this chapter shall be allowed a credit 7 against such tax, pursuant to the provisions referenced in subdivision 8 (f) of this section. Such credit shall be allowed with respect to a 9 qualified site, as such term is defined in paragraph one of subdivision 10 (b) of this section. The amount of the credit in a taxable year shall be 11 the sum of the credit components specified in paragraphs two, three and 12 four of this subdivision applicable in such year. Notwithstanding the 13 foregoing, in the event that the qualified site is owned by, or was 14 acquired by a taxpayer from, a municipality, as such term is defined in 15 subdivision twenty-one of section 27-1405 of the environmental conserva- 16 tion law, the credit shall be reduced by the following amounts to the 17 extent that they were incurred after the date of the brownfield site 18 cleanup agreement executed by the taxpayer and the department of envi- 19 ronmental conservation pursuant to section 27-1409 of the environmental 20 conservation law (A) the amount of all site preparation costs and 21 on-site groundwater remediation costs undertaken specifically on such 22 qualified site by or at the expense of such municipality (or any affil- 23 iated municipality thereof), (B) the amount of all costs of all infras- 24 tructure work, as defined below, undertaken specifically on the quali- 25 fied site by or at the expense of such municipality (or any affiliated 26 municipality thereof) and (C) the amount of all costs for improvements 27 undertaken by or at the expense of the municipality (or any affiliated 28 municipality thereof) specifically on any portion of the qualified site EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD00091-01-1A. 1892 2 1 which will be available to the general public free of charge or which 2 improvements are made for environmental conservation purposes; and such 3 amount of all costs under subparagraphs (A), (B) and (C) of this para- 4 graph shall instead be paid by the tax department to such municipality 5 (or any affiliated municipality designated by such municipality); 6 provided, however, that such municipality may waive its right to any 7 such payment, in whole or in part, by filing written notice of such 8 waiver with the commissioner on or before the date the taxpayer files a 9 return claiming the credit described in this section, and the amount of 10 any such payment so waived shall not be a reduction against the credit 11 available to the taxpayer hereunder. For purposes of this section, 12 "infrastructure work" means all improvements which are customarily 13 constructed or installed by a municipality and are generally necessary 14 for a site to be developed, including without limitation roads, curbs, 15 sidewalks, sewers, utilities, bulkheading, drainage facilities and 16 related earthwork and landscaping. 17 (2) Site preparation credit component. The site preparation credit 18 component shall be equal to the applicable percentage of the site prepa- 19 ration costs paid or incurred by the taxpayer or the municipality (or 20 any affiliated municipality thereof) entitled to a payment pursuant to 21 paragraph one of this subdivision with respect to a qualified site. The 22 credit component amount so determined with respect to a site's quali- 23 fication for a certificate of completion shall be allowed for the taxa- 24 ble year in which the effective date of the certificate of completion 25 occurs. The credit component amount determined other than with respect 26 to such qualification shall be allowed for the taxable year in which the 27 improvement to which the applicable costs apply is placed in service for 28 up to five taxable years after the issuance of such certificate of 29 completion. 30 (4) On-site groundwater remediation credit component. The on-site 31 groundwater remediation credit component shall be equal to the applica- 32 ble percentage of the on-site groundwater remediation costs paid or 33 incurred by the taxpayer or the municipality (or any affiliated munici- 34 pality thereof) entitled to a payment pursuant to paragraph one of this 35 subdivision with respect to a qualified site (to the extent that such 36 groundwater remediation costs are not included in the determination of 37 the site preparation credit or the cost or other basis included in the 38 determination of the tangible property credit). The credit component so 39 determined for costs incurred and paid with respect to and prior to the 40 issuance of a certificate of completion shall be allowed for the taxable 41 year in which the effective date of the issuance of a certificate of 42 completion occurs. The credit component amount determined in taxable 43 years after the effective date of the issuance of a certificate of 44 completion shall be allowed in the taxable year such qualified costs are 45 incurred and paid for up to five taxable years after the issuance of 46 such certificate of completion. 47 (6) Site preparation costs and on-site groundwater remediation costs 48 paid or incurred by the taxpayer or the municipality (or any affiliated 49 municipality thereof) entitled to a payment pursuant to paragraph one of 50 this subdivision with respect to a qualified site and the cost or other 51 basis for federal income tax purposes of tangible personal property and 52 other tangible property, including buildings and structural components 53 of buildings, which constitute qualified tangible property shall only 54 include costs paid or incurred by the taxpayer or the municipality (or 55 any affiliated municipality thereof) entitled to a payment pursuant to 56 paragraph one of this subdivision on or after the date of the brownfieldA. 1892 3 1 site cleanup agreement executed by the taxpayer and the department of 2 environmental conservation pursuant to section 27-1409 of the environ- 3 mental conservation law. 4 (7) The amount of any grant received from the federal, state or a 5 local government or an instrumentality or public benefit corporation 6 thereof received by the taxpayer and used to pay for any of the costs 7 described in paragraphs two, three and four of this subdivision, which 8 was not included in the federal gross income of the taxpayer, shall be 9 subtracted in computing the credit components under this section; 10 provided that the foregoing shall not apply to any amounts the source of 11 which are payments pursuant to paragraph one of this subdivision. 12 § 2. Paragraph 3 of subdivision (b) of section 21 of the tax law, as 13 amended by chapter 420 of the laws of 2006, clause (i) of subparagraph 14 (B) as amended by section 22 of part BB of chapter 56 of the laws of 15 2015, is amended to read as follows: 16 (3) Qualified tangible property. "Qualified tangible property" is 17 property described in either subparagraph (A) or (B) of this paragraph 18 which: 19 (A) (i) is depreciable pursuant to section one hundred sixty-seven of 20 the internal revenue code, 21 (ii) has a useful life of four years or more, 22 (iii) has been acquired by purchase as defined in section one hundred 23 seventy-nine (d) of the internal revenue code by the taxpayer or the 24 municipality (or any affiliated municipality thereof) entitled to a 25 payment pursuant to paragraph one of subdivision (a) of this section, 26 (iv) has a situs on a qualified site in this state, and 27 (v) is principally used by the taxpayer for industrial, commercial, 28 recreational or environmental conservation purposes (including the 29 commercial development of residential housing); or 30 (B) (i) is, or when occupied becomes, part of a dwelling whose primary 31 ownership structure is covered under either article nine-B of the real 32 property law or meets the requirements of section 216 (b)(1) of the 33 Internal Revenue Code or is part of an affordable housing project as 34 defined in subdivision twenty-nine of section 27-1405 of the environ- 35 mental conservation law, where units are sold as single family homes or 36 multiple family dwellings; 37 (ii) has been acquired by purchase (as defined in section one hundred 38 seventy-nine (d) of the Internal Revenue Code) by the taxpayer or the 39 municipality (or any affiliated municipality thereof) entitled to a 40 payment pursuant to paragraph one of subdivision (a) of this section; 41 (iii) has a situs on a qualified site in this state; and 42 (iv) for purposes of this subparagraph only, and notwithstanding any 43 other section of law to the contrary, property qualifying under this 44 subparagraph shall be deemed to be qualified tangible property for the 45 purposes of paragraph one of subdivision (d) of this section; and in 46 addition, for the purposes of this subdivision only, property qualifying 47 under this subparagraph shall be deemed to have been placed in service 48 for the purposes of paragraph three of subdivision (a) of this section 49 when a certificate of occupancy is issued for such property. 50 § 3. This act shall take effect immediately and shall apply to all 51 qualified sites from the date on which the brownfield site clean-up 52 agreement with respect to such qualified site was entered into, includ- 53 ing without limitation such brownfield site clean-up agreements entered 54 into prior to such effective date.