Bill Text: NY S08636 | 2017-2018 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relates to the calculation of the brownfield site preparation credit for certain taxpayers.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2018-06-19 - referred to environmental conservation [S08636 Detail]

Download: New_York-2017-S08636-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          8636
                    IN SENATE
                                      May 10, 2018
                                       ___________
        Introduced  by  Sen.  MARCELLINO  -- read twice and ordered printed, and
          when printed to be committed to the Committee on Environmental Conser-
          vation
        AN ACT to amend the environmental conservation law and the tax  law,  in
          relation  to the calculation of the brownfield site preparation credit
          for certain taxpayers
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Subdivision  3  of  section  27-1419 of the environmental
     2  conservation law, as amended by section 10 of part BB of chapter  56  of
     3  the laws of 2015, is amended to read as follows:
     4    3.  Upon receipt of the final engineering report, the department shall
     5  review such report and the data submitted  pursuant  to  the  brownfield
     6  site cleanup agreement as well as any other relevant information regard-
     7  ing  the brownfield site. Upon satisfaction of the commissioner that the
     8  remediation requirements set forth in this title have been  or  will  be
     9  achieved  in  accordance with the timeframes, if any, established in the
    10  remedial work plan, the commissioner shall issue a written  approval  of
    11  the  final engineering report and a certificate of completion. The costs
    12  of activities set forth in the final engineering report, and  the  costs
    13  of  activities  set  forth  in all work plans approved under this title,
    14  shall be used by the department of taxation and finance for purposes  of
    15  calculating  the site preparation credit component under section twenty-
    16  one of the tax law. The certificate shall include  such  information  as
    17  determined  by the department of taxation and finance, including but not
    18  limited to the brownfield site boundaries included in  the  final  engi-
    19  neering  report,  the date of the brownfield site cleanup agreement, and
    20  the applicable percentages available as of the date of  the  certificate
    21  of  completion  for  that site for purposes of section twenty-one of the
    22  tax law. For those sites for which the department has issued a notice to
    23  the applicant on or after July first, two thousand fifteen or  the  date
    24  of  publication  in  the state register of proposed regulations defining
    25  "underutilized" as provided in subdivision thirty of section 27-1405  of
    26  this title, whichever shall be later, that its request for participation
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15844-02-8
        S. 8636                             2
     1  has  been  accepted  under  subdivision  six  of section 27-1407 of this
     2  title, the tangible property credit component of the brownfield redevel-
     3  opment tax credit pursuant to paragraph  three  of  subdivision  (a)  of
     4  section twenty-one of the tax law shall only be available to the taxpay-
     5  er  if  the criteria for receiving such tax component have been met. For
     6  those sites for which the department has issued a notice to the taxpayer
     7  after June twenty-third, two thousand eight that its request for partic-
     8  ipation has been accepted under subdivision six of  section  27-1407  of
     9  this  title,  the  applicable percentage for the site preparation credit
    10  component pursuant to paragraph two of subdivision (a) of section  twen-
    11  ty-one  of  the  tax law, and the on-site groundwater remediation credit
    12  component pursuant to paragraph four of subdivision (a) of section twen-
    13  ty-one of the tax law shall be based on the level  of  cleanup  achieved
    14  pursuant  to  subdivision  four of section 27-1415 of this title and the
    15  level of cleanup of soils to contaminant-specific  soil  cleanup  objec-
    16  tives promulgated pursuant to subdivision six of section 27-1415 of this
    17  title, up to a maximum of fifty percent, as follows:
    18    (a)  soil  cleanup for unrestricted use, the protection of groundwater
    19  or the protection of ecological  resources,  the  applicable  percentage
    20  shall be fifty percent;
    21    (b)  soil cleanup for residential use, the applicable percentage shall
    22  be forty percent,  except  for  Track  4  which  shall  be  twenty-eight
    23  percent;
    24    (c)  soil  cleanup for commercial use, the applicable percentage shall
    25  be thirty-three percent, except for Track 4 which shall  be  twenty-five
    26  percent;
    27    (d)  soil  cleanup for industrial use, the applicable percentage shall
    28  be twenty-seven percent, except for Track 4 which  shall  be  twenty-two
    29  percent.
    30    §  2.  Paragraph 2 of subdivision (b) of section 21 of the tax law, as
    31  amended by section 23 of part BB of chapter 56 of the laws of  2015,  is
    32  amended to read as follows:
    33    (2)  (A)  Site  preparation  costs.  The term "site preparation costs"
    34  shall mean all amounts properly chargeable to a capital  account,  which
    35  are  paid or incurred which are necessary to implement a site's investi-
    36  gation, remediation, or qualification for a certificate  of  completion,
    37  and shall include costs of: excavation; demolition; activities undertak-
    38  en  under the oversight of the department of labor or in accordance with
    39  standards established by the  department  of  health  to  remediate  and
    40  dispose  of  regulated materials including asbestos, lead or polychlori-
    41  nated biphenyls; environmental  consulting;  engineering;  legal  costs;
    42  transportation, disposal, treatment or containment of contaminated soil;
    43  remediation  measures  taken  to  address contaminated soil vapor; cover
    44  systems consistent with  applicable  regulations;  physical  support  of
    45  excavation;  dewatering  and  other work to facilitate or enable remedi-
    46  ation activities; sheeting,  shoring,  and  other  engineering  controls
    47  required  to prevent off-site migration of contamination from the quali-
    48  fied site or migrating onto the qualified site; and the costs  of  fenc-
    49  ing,  temporary  electric  wiring,  scaffolding, and security facilities
    50  until such time as the certificate of completion has been  issued.  Site
    51  preparation shall include all costs paid or incurred within sixty months
    52  after  the  last  day  of  the  tax  year  in  which  the certificate of
    53  completion is issued that are necessary for compliance with the  certif-
    54  icate of completion or subsequent modifications thereof, or the remedial
    55  program  defined  in  such  certificate  of completion including but not
    56  limited to institutional controls,  engineering  controls,  an  approved
        S. 8636                             3
     1  site  management plan, and an environmental easement with respect to the
     2  qualified site. Site preparation cost shall not  include  the  costs  of
     3  foundation  systems  that  exceed  the  cover system requirements in the
     4  regulations applicable to the qualified site.
     5    (B) With respect to a taxpayer to whom a certificate of completion was
     6  issued  as  provided  under  subdivision  five of section 27-1419 of the
     7  environmental conservation law after  July  twenty-first,  two  thousand
     8  eight but prior to the effective date of section twenty-three of part BB
     9  of  chapter  fifty-six  of the laws of two thousand fifteen, but who has
    10  yet to be granted the site preparation credit from  the  department  for
    11  such  site  as provided in this section, site preparation cost shall not
    12  include the costs of foundation systems that  exceed  the  cover  system
    13  requirements  in  the  final  engineering  report and work plans for the
    14  qualified site.
    15    § 3. This act shall take effect  immediately.  Effective  immediately,
    16  the  addition,  amendment and/or repeal of any rule or regulation neces-
    17  sary for the implementation of  this  act  on  its  effective  date  are
    18  authorized  and  directed  to  be  made  and completed on or before such
    19  effective date.