S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3607
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             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:

   Section  1.  Paragraphs 1, 2, 4, 6 and 7 of subdivision (a) of section
 21 of the tax law, paragraph 1 as amended by section 39  of  part  A  of
 chapter 59 of the laws of 2014, paragraph 2 as amended by section 4  and
 paragraph 4 as amended by section 5 of part LL of chapter 58 of the laws
 of  2022  and  paragraphs  6  and 7 as amended by section 1 of part H of
 chapter 577 of the laws of 2004, 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-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08373-01-3
              

 A. 3607                             2
 
 TRUCTURE  WORK,  AS DEFINED BELOW, UNDERTAKEN SPECIFICALLY ON THE QUALI-
 FIED SITE BY OR AT THE EXPENSE OF SUCH MUNICIPALITY (OR  ANY  AFFILIATED
 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; provided, however, that for any qualified site  to  which  a
 certificate of completion is issued on or after July first, two thousand
 fifteen  but  on  or before June twenty-fourth, two thousand twenty-one,
 the site preparation credit component for such costs  shall  be  allowed
 for  up to seven 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; provided, however, that with respect  to
 A. 3607                             3
 
 any qualified site for which a certificate of completion has been issued
 on or after July first, two thousand fifteen but on or before June twen-
 ty-fourth,  two  thousand twenty-one, the credit component amount deter-
 mined  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 seven 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
 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.
   § 2. Paragraph 3 of subdivision (b) of section 21 of the tax  law,  as
 amended  by  chapter 420 of the laws of 2006, clause (i) of subparagraph
 (B) as amended by section 22 of part BB of chapter 56  of  the  laws  of
 2015, 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  or  is part of an affordable housing project as
 defined in subdivision twenty-nine of section 27-1405  of  the  environ-
 mental  conservation law, where units are sold as single family homes or
 multiple family dwellings;
   (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
 A. 3607                             4
 
 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.
   §  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.