Bill Text: NY A03607 | 2023-2024 | 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.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2024-01-03 - referred to ways and means [A03607 Detail]
Download: New_York-2023-A03607-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 3607 2023-2024 Regular Sessions IN ASSEMBLY February 3, 2023 ___________ Introduced by M. of A. PRETLOW -- read once and referred to the Commit- tee on Ways and Means 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, paragraph 1 as amended by section 39 of part A of 3 chapter 59 of the laws of 2014, paragraph 2 as amended by section 4 and 4 paragraph 4 as amended by section 5 of part LL of chapter 58 of the laws 5 of 2022 and paragraphs 6 and 7 as amended by section 1 of part H of 6 chapter 577 of the laws of 2004, are amended to read as follows: 7 (1) General. A taxpayer subject to tax under article nine, nine-A, 8 twenty-two or thirty-three of this chapter shall be allowed a credit 9 against such tax, pursuant to the provisions referenced in subdivision 10 (f) of this section. Such credit shall be allowed with respect to a 11 qualified site, as such term is defined in paragraph one of subdivision 12 (b) of this section. The amount of the credit in a taxable year shall be 13 the sum of the credit components specified in paragraphs two, three and 14 four of this subdivision applicable in such year. Notwithstanding the 15 foregoing, in the event that the qualified site is owned by, or was 16 acquired by a taxpayer from, a municipality, as such term is defined in 17 subdivision twenty-one of section 27-1405 of the environmental conserva- 18 tion law, the credit shall be reduced by the following amounts to the 19 extent that they were incurred after the date of the brownfield site 20 cleanup agreement executed by the taxpayer and the department of envi- 21 ronmental conservation pursuant to section 27-1409 of the environmental 22 conservation law (A) the amount of all site preparation costs and 23 on-site groundwater remediation costs undertaken specifically on such 24 qualified site by or at the expense of such municipality (or any affil- 25 iated municipality thereof), (B) the amount of all costs of all infras- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD08373-01-3A. 3607 2 1 tructure work, as defined below, undertaken specifically on the quali- 2 fied site by or at the expense of such municipality (or any affiliated 3 municipality thereof), and (C) the amount of all costs for improvements 4 undertaken by or at the expense of the municipality (or any affiliated 5 municipality thereof), specifically on any portion of the qualified site 6 which will be available to the general public free of charge or which 7 improvements are made for environmental conservation purposes; and such 8 amount of all costs under subparagraphs (A), (B) and (C) of this para- 9 graph shall instead be paid by the tax department to such municipality 10 (or any affiliated municipality designated by such municipality); 11 provided, however, that such municipality may waive its right to any 12 such payment, in whole or in part, by filing written notice of such 13 waiver with the commissioner on or before the date the taxpayer files a 14 return claiming the credit described in this section, and the amount of 15 any such payment so waived shall not be a reduction against the credit 16 available to the taxpayer hereunder. For purposes of this section, 17 "infrastructure work" means all improvements which are customarily 18 constructed or installed by a municipality and are generally necessary 19 for a site to be developed, including without limitation roads, curbs, 20 sidewalks, sewers, utilities, bulkheading, drainage facilities and 21 related earthwork and landscaping. 22 (2) Site preparation credit component. The site preparation credit 23 component shall be equal to the applicable percentage of the site prepa- 24 ration costs paid or incurred by the taxpayer or the municipality (or 25 any affiliated municipality thereof) entitled to a payment pursuant to 26 paragraph one of this subdivision with respect to a qualified site. The 27 credit component amount so determined with respect to a site's quali- 28 fication for a certificate of completion shall be allowed for the taxa- 29 ble year in which the effective date of the certificate of completion 30 occurs. The credit component amount determined other than with respect 31 to such qualification shall be allowed for the taxable year in which the 32 improvement to which the applicable costs apply is placed in service for 33 up to five taxable years after the issuance of such certificate of 34 completion; provided, however, that for any qualified site to which a 35 certificate of completion is issued on or after July first, two thousand 36 fifteen but on or before June twenty-fourth, two thousand twenty-one, 37 the site preparation credit component for such costs shall be allowed 38 for up to seven taxable years after the issuance of such certificate of 39 completion. 40 (4) On-site groundwater remediation credit component. The on-site 41 groundwater remediation credit component shall be equal to the applica- 42 ble percentage of the on-site groundwater remediation costs paid or 43 incurred by the taxpayer or the municipality (or any affiliated munici- 44 pality thereof) entitled to a payment pursuant to paragraph one of this 45 subdivision with respect to a qualified site (to the extent that such 46 groundwater remediation costs are not included in the determination of 47 the site preparation credit or the cost or other basis included in the 48 determination of the tangible property credit). The credit component so 49 determined for costs incurred and paid with respect to and prior to the 50 issuance of a certificate of completion shall be allowed for the taxable 51 year in which the effective date of the issuance of a certificate of 52 completion occurs. The credit component amount determined in taxable 53 years after the effective date of the issuance of a certificate of 54 completion shall be allowed in the taxable year such qualified costs are 55 incurred and paid for up to five taxable years after the issuance of 56 such certificate of completion; provided, however, that with respect toA. 3607 3 1 any qualified site for which a certificate of completion has been issued 2 on or after July first, two thousand fifteen but on or before June twen- 3 ty-fourth, two thousand twenty-one, the credit component amount deter- 4 mined in taxable years after the effective date of the issuance of a 5 certificate of completion shall be allowed in the taxable year such 6 qualified costs are incurred and paid for up to seven taxable years 7 after the issuance of such certificate of completion. 8 (6) Site preparation costs and on-site groundwater remediation costs 9 paid or incurred by the taxpayer or the municipality (or any affiliated 10 municipality thereof) entitled to a payment pursuant to paragraph one of 11 this subdivision with respect to a qualified site and the cost or other 12 basis for federal income tax purposes of tangible personal property and 13 other tangible property, including buildings and structural components 14 of buildings, which constitute qualified tangible property shall only 15 include costs paid or incurred by the taxpayer or the municipality (or 16 any affiliated municipality thereof) entitled to a payment pursuant to 17 paragraph one of this subdivision on or after the date of the brownfield 18 site cleanup agreement executed by the taxpayer and the department of 19 environmental conservation pursuant to section 27-1409 of the environ- 20 mental conservation law. 21 (7) The amount of any grant received from the federal, state or a 22 local government or an instrumentality or public benefit corporation 23 thereof received by the taxpayer and used to pay for any of the costs 24 described in paragraphs two, three and four of this subdivision, which 25 was not included in the federal gross income of the taxpayer, shall be 26 subtracted in computing the credit components under this section; 27 provided that the foregoing shall not apply to any amounts the source of 28 which are payments pursuant to paragraph one of this subdivision. 29 § 2. Paragraph 3 of subdivision (b) of section 21 of the tax law, as 30 amended by chapter 420 of the laws of 2006, clause (i) of subparagraph 31 (B) as amended by section 22 of part BB of chapter 56 of the laws of 32 2015, is amended to read as follows: 33 (3) Qualified tangible property. "Qualified tangible property" is 34 property described in either subparagraph (A) or (B) of this paragraph 35 which: 36 (A) (i) is depreciable pursuant to section one hundred sixty-seven of 37 the internal revenue code, 38 (ii) has a useful life of four years or more, 39 (iii) has been acquired by purchase as defined in section one hundred 40 seventy-nine (d) of the internal revenue code by the taxpayer or the 41 municipality (or any affiliated municipality thereof) entitled to a 42 payment pursuant to paragraph one of subdivision (a) of this section, 43 (iv) has a situs on a qualified site in this state, and 44 (v) is principally used by the taxpayer for industrial, commercial, 45 recreational or environmental conservation purposes (including the 46 commercial development of residential housing); or 47 (B) (i) is, or when occupied becomes, part of a dwelling whose primary 48 ownership structure is covered under either article nine-B of the real 49 property law or meets the requirements of section 216 (b)(1) of the 50 Internal Revenue Code or is part of an affordable housing project as 51 defined in subdivision twenty-nine of section 27-1405 of the environ- 52 mental conservation law, where units are sold as single family homes or 53 multiple family dwellings; 54 (ii) has been acquired by purchase (as defined in section one hundred 55 seventy-nine (d) of the Internal Revenue Code) by the taxpayer or theA. 3607 4 1 municipality (or any affiliated municipality thereof) entitled to a 2 payment pursuant to paragraph one of subdivision (a) of this section; 3 (iii) has a situs on a qualified site in this state; and 4 (iv) for purposes of this subparagraph only, and notwithstanding any 5 other section of law to the contrary, property qualifying under this 6 subparagraph shall be deemed to be qualified tangible property for the 7 purposes of paragraph one of subdivision (d) of this section; and in 8 addition, for the purposes of this subdivision only, property qualifying 9 under this subparagraph shall be deemed to have been placed in service 10 for the purposes of paragraph three of subdivision (a) of this section 11 when a certificate of occupancy is issued for such property. 12 § 3. This act shall take effect immediately and shall apply to all 13 qualified sites from the date on which the brownfield site clean-up 14 agreement with respect to such qualified site was entered into, includ- 15 ing without limitation such brownfield site clean-up agreements entered 16 into prior to such effective date.
