S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   816

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                             January 7, 2015
                               ___________

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:

  Section  1.  Paragraphs 1, 2, 4, 6 and 7 of subdivision (a) of section
21 of the tax law, as amended by section 1 of part H of chapter  577  of
the  laws  of  2004,  paragraph  1 as amended by section 39 of part A of
chapter 59 of the laws of 2014, are amended to read as follows:
  (1) General. A taxpayer subject to tax  under  article  nine,  nine-A,
twenty-two  or  thirty-three  of  this chapter shall be allowed a credit
against such tax, pursuant to the provisions referenced  in  subdivision
(f)  of  this  section.  Such  credit shall be allowed with respect to a
qualified site, as such term is defined in paragraph one of  subdivision
(b) of this section. The amount of the credit in a taxable year shall be
the  sum of the credit components specified in paragraphs two, three and
four of this subdivision applicable in such year.   NOTWITHSTANDING  THE
FOREGOING,  IN  THE  EVENT  THAT  THE QUALIFIED SITE IS OWNED BY, OR WAS
ACQUIRED BY A TAXPAYER FROM, A MUNICIPALITY, AS SUCH TERM IS DEFINED  IN
SUBDIVISION TWENTY-ONE OF SECTION 27-1405 OF THE ENVIRONMENTAL CONSERVA-
TION  LAW,  THE  CREDIT SHALL BE REDUCED BY THE FOLLOWING AMOUNTS TO THE
EXTENT THAT THEY WERE INCURRED AFTER THE DATE  OF  THE  BROWNFIELD  SITE
CLEANUP  AGREEMENT  EXECUTED BY THE TAXPAYER AND THE DEPARTMENT OF ENVI-
RONMENTAL CONSERVATION PURSUANT TO SECTION 27-1409 OF THE  ENVIRONMENTAL
CONSERVATION  LAW  (A)  THE  AMOUNT  OF  ALL  SITE PREPARATION COSTS AND
ON-SITE GROUNDWATER REMEDIATION COSTS UNDERTAKEN  SPECIFICALLY  ON  SUCH
QUALIFIED  SITE BY OR AT THE EXPENSE OF SUCH MUNICIPALITY (OR ANY AFFIL-
IATED MUNICIPALITY THEREOF), (B) THE AMOUNT OF ALL COSTS OF ALL  INFRAS-
TRUCTURE  WORK,  AS DEFINED BELOW, UNDERTAKEN SPECIFICALLY ON THE QUALI-
FIED SITE BY OR AT THE EXPENSE OF SUCH MUNICIPALITY (OR  ANY  AFFILIATED

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05389-01-5
              

A. 816                              2

MUNICIPALITY  THEREOF)  AND (C) THE AMOUNT OF ALL COSTS FOR IMPROVEMENTS
UNDERTAKEN BY OR AT THE EXPENSE OF THE MUNICIPALITY (OR  ANY  AFFILIATED
MUNICIPALITY  THEREOF) SPECIFICALLY ON ANY PORTION OF THE QUALIFIED SITE
WHICH  WILL  BE  AVAILABLE TO THE GENERAL PUBLIC FREE OF CHARGE OR WHICH
IMPROVEMENTS ARE MADE FOR ENVIRONMENTAL CONSERVATION PURPOSES; AND  SUCH
AMOUNT  OF  ALL COSTS UNDER SUBPARAGRAPHS (A), (B) AND (C) OF THIS PARA-
GRAPH SHALL INSTEAD BE PAID BY THE TAX DEPARTMENT TO  SUCH  MUNICIPALITY
(OR  ANY  AFFILIATED  MUNICIPALITY  DESIGNATED  BY  SUCH  MUNICIPALITY);
PROVIDED, HOWEVER, THAT SUCH MUNICIPALITY MAY WAIVE  ITS  RIGHT  TO  ANY
SUCH  PAYMENT,  IN  WHOLE  OR  IN PART, BY FILING WRITTEN NOTICE OF SUCH
WAIVER WITH THE COMMISSIONER ON OR BEFORE THE DATE THE TAXPAYER FILES  A
RETURN  CLAIMING THE CREDIT DESCRIBED IN THIS SECTION, AND THE AMOUNT OF
ANY SUCH PAYMENT SO WAIVED SHALL NOT BE A REDUCTION AGAINST  THE  CREDIT
AVAILABLE  TO  THE  TAXPAYER  HEREUNDER.  FOR  PURPOSES OF THIS SECTION,
"INFRASTRUCTURE WORK"  MEANS  ALL  IMPROVEMENTS  WHICH  ARE  CUSTOMARILY
CONSTRUCTED  OR  INSTALLED BY A MUNICIPALITY AND ARE GENERALLY NECESSARY
FOR A SITE TO BE DEVELOPED, INCLUDING WITHOUT LIMITATION  ROADS,  CURBS,
SIDEWALKS,  SEWERS,  UTILITIES,  BULKHEADING,  DRAINAGE  FACILITIES  AND
RELATED EARTHWORK AND LANDSCAPING.
  (2) Site preparation credit component.  The  site  preparation  credit
component shall be equal to the applicable percentage of the site prepa-
ration  costs  paid  or incurred by the taxpayer OR THE MUNICIPALITY (OR
ANY AFFILIATED MUNICIPALITY THEREOF) ENTITLED TO A PAYMENT  PURSUANT  TO
PARAGRAPH  ONE OF THIS SUBDIVISION with respect to a qualified site. The
credit component amount so determined with respect to  a  site's  quali-
fication  for a certificate of completion shall be allowed for the taxa-
ble year in which the effective date of the  certificate  of  completion
occurs.  The  credit component amount determined other than with respect
to such qualification shall be allowed for the taxable year in which the
improvement to which the applicable costs apply is placed in service for
up to five taxable years after  the  issuance  of  such  certificate  of
completion.
  (4)  On-site  groundwater  remediation  credit  component. The on-site
groundwater remediation credit component shall be equal to the  applica-
ble  percentage  of  the  on-site  groundwater remediation costs paid or
incurred by the taxpayer OR THE MUNICIPALITY (OR ANY AFFILIATED  MUNICI-
PALITY  THEREOF) ENTITLED TO A PAYMENT PURSUANT TO PARAGRAPH ONE OF THIS
SUBDIVISION with respect to a qualified site (to the  extent  that  such
groundwater  remediation  costs are not included in the determination of
the site preparation credit or the cost or other basis included  in  the
determination  of the tangible property credit). The credit component so
determined for costs incurred and paid with respect to and prior to  the
issuance of a certificate of completion shall be allowed for the taxable
year  in  which  the  effective date of the issuance of a certificate of
completion occurs. The credit component  amount  determined  in  taxable
years  after  the  effective  date  of  the issuance of a certificate of
completion shall be allowed in the taxable year such qualified costs are
incurred and paid for up to five taxable years  after  the  issuance  of
such certificate of completion.
  (6)  Site  preparation costs and on-site groundwater remediation costs
paid or incurred by the taxpayer OR THE MUNICIPALITY (OR ANY  AFFILIATED
MUNICIPALITY THEREOF) ENTITLED TO A PAYMENT PURSUANT TO PARAGRAPH ONE OF
THIS  SUBDIVISION with respect to a qualified site and the cost or other
basis for federal income tax purposes of tangible personal property  and
other  tangible  property, including buildings and structural components
of buildings, which constitute qualified tangible  property  shall  only

A. 816                              3

include  costs  paid or incurred by the taxpayer OR THE MUNICIPALITY (OR
ANY AFFILIATED MUNICIPALITY THEREOF) ENTITLED TO A PAYMENT  PURSUANT  TO
PARAGRAPH ONE OF THIS SUBDIVISION on or after the date of the brownfield
site  cleanup  agreement  executed by the taxpayer and the department of
environmental conservation pursuant to section 27-1409 of  the  environ-
mental conservation law.
  (7)  The  amount  of  any  grant received from the federal, state or a
local government or an instrumentality  or  public  benefit  corporation
thereof  received  by  the taxpayer and used to pay for any of the costs
described in paragraphs two, three and four of this  subdivision,  which
was  not  included in the federal gross income of the taxpayer, shall be
subtracted in  computing  the  credit  components  under  this  section;
PROVIDED THAT THE FOREGOING SHALL NOT APPLY TO ANY AMOUNTS THE SOURCE OF
WHICH ARE PAYMENTS PURSUANT TO PARAGRAPH ONE OF THIS SUBDIVISION.
  S  2.  Paragraph 3 of subdivision (b) of section 21 of the tax law, as
amended by chapter 420 of the laws  of  2006,  is  amended  to  read  as
follows:
  (3)  Qualified  tangible  property.  "Qualified  tangible property" is
property described in either subparagraph (A) or (B) of  this  paragraph
which:
  (A)  (i) is depreciable pursuant to section one hundred sixty-seven of
the internal revenue code,
  (ii) has a useful life of four years or more,
  (iii) has been acquired by purchase as defined in section one  hundred
seventy-nine  (d)  of  the  internal revenue code BY THE TAXPAYER OR THE
MUNICIPALITY (OR ANY AFFILIATED  MUNICIPALITY  THEREOF)  ENTITLED  TO  A
PAYMENT PURSUANT TO PARAGRAPH ONE OF SUBDIVISION (A) OF THIS SECTION,
  (iv) has a situs on a qualified site in this state, and
  (v)  is  principally  used by the taxpayer for industrial, commercial,
recreational  or  environmental  conservation  purposes  (including  the
commercial development of residential housing); or
  (B)(i)  is, or when occupied becomes, part of a dwelling whose primary
ownership structure is covered under either article nine-B of  the  real
property  law  or  meets  the  requirements of section 216 (b)(1) of the
Internal Revenue Code;
  (ii) has been acquired by purchase (as defined in section one  hundred
seventy-nine  (d)  of  the Internal Revenue Code) BY THE TAXPAYER OR THE
MUNICIPALITY (OR ANY AFFILIATED  MUNICIPALITY  THEREOF)  ENTITLED  TO  A
PAYMENT PURSUANT TO PARAGRAPH ONE OF SUBDIVISION (A) OF THIS SECTION;
  (iii) has a situs on a qualified site in this state; and
  (iv)  for  purposes of this subparagraph only, and notwithstanding any
other section of law to the contrary,  property  qualifying  under  this
subparagraph  shall  be deemed to be qualified tangible property for the
purposes of paragraph one of subdivision (d) of  this  section;  and  in
addition, for the purposes of this subdivision only, property qualifying
under  this  subparagraph shall be deemed to have been placed in service
for the purposes of paragraph three of subdivision (a) of  this  section
when a certificate of occupancy is issued for such property.
  S  3.  This  act  shall take effect immediately and shall apply to all
qualified sites from the date on  which  the  brownfield  site  clean-up
agreement  with respect to such qualified site was entered into, includ-
ing without limitation such brownfield site clean-up agreements  entered
into prior to such effective date.