Senate Bill S7210

2021-2022 Legislative Session

Provides for eligibility for participation in the brownfield cleanup program, assignment of the brownfield redevelopment tax credits and brownfield opportunity areas

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Archive: Last Bill Status - In Senate Committee Environmental Conservation Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to environmental conservation
Jun 07, 2021	referred to rules

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2021-S7210 (ACTIVE) - Details

See Assembly Version of this Bill:: A8228
Current Committee:: Senate Environmental Conservation
Law Section:: Environmental Conservation Law
Laws Affected:: Amd §§27-1405 & 27-1407, En Con L; amd §21, Tax L; amd Part H §31, Chap 1 of 2003

2021-S7210 (ACTIVE) - Summary

Provides for eligibility for participation in the brownfield cleanup program, assignment of the brownfield redevelopment tax credits and brownfield opportunity areas.

2021-S7210 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7210

SPONSOR: KENNEDY
 
TITLE OF BILL:

An act to amend the environmental conservation law and the tax law, in
relation to eligibility for participation in the brownfield cleanup
program, assignment of the brownfield redevelopment tax credits and
brownfield opportunity areas; and to amend part H of chapter 1 of the
laws of 2003, amending the tax law relating to brownfield redevelopment
tax credits, remediated brownfield credit for real property taxes for
qualified sites and environmental remediation insurance credits, in
relation to tax credits for certain sites

 
PURPOSE OF BILL:

To continue to encourage brownfield redevelopment across the state of
New York.

 
SUMMARY OF SPECIFIC PROVISIONS:

Sections 1 and 2 clarify eligibility for the tangible property tax cred-

its for affordable housing projects that are subject to binding
restrictions which may not arise until the building is placed into
service, and for projects certified by the Secretary of State as
conforming to an approved brownfield opportunity area plan. Current
language in the statute requires written documentation in order to make
a request to the Department of Environmental Conservation (DEC) for an
eligibility determination before the certificate of completion is
issued. Given that some affordable housing projects do not have any
documentation to provide to DEC to be able to request an eligibility
determination before the certificate of completion is earned, the stat-
ute should be amended to clarify that these projects can claim the
tangible property tax credits as long as affordable housing restrictions
are imposed on the site before the tax return is filed for these cred-
its. In addition, projects certified by the

Secretary of State as conforming to an approved brownfield opportunity
area (BOA) plan will be eligible for tangible property tax credits simi-
lar to eligibility afforded sites in an Environmental-Zone.

Section 3 modifies Section 21(a)(3)of the Tax Law applicable to Gener-
ation One, Two and Three project sites to extend the tangible property
credit component from one hundred twenty months to one hundred eighty
months after the date of the issuance of a certificate of completion to
give parties more time to construct their projects on fully remediated
brownfield sites given the current economic conditions.

Section 4 and 5 amends section 21 of the Tax Law to extend the five-year
period to claim site preparation credits to seven years for all sites.
The section also cures an oversight in the 2015 Brownfield Cleanup
Program law to clarify that taxpayers may claim site preparation credits
for costs to comply with the certificate of completion and the approved
remedial program (COC compliance costs) in the year those costs are paid
or incurred. While the law was changed in 2015 to let taxpayers claim
credits for COC compliance costs, there was not a corresponding change
to the timing rule that would allow those credits in the year those
costs are paid or incurred. This left taxpayers with eligible costs, but
no tax year to claim them. The provision corrects this error by allowing
taxpayers to claim credits in 2021 for pre-2021 COC compliance costs not
otherwise claimed, and thereafter in the year the costs are paid or
incurred.

Section 6 adds a new paragraph (7) to Section 21(b)of the Tax Law to
expand the definition of Environmental zones (EN-Zones) to include
potential environmental justice areas designated by DEC throughout the
state, which have a disproportionate share of negative environmental
consequences from industrial and other operations and policies, based on
the definition as stated in the DEC's website at
https://www.dec.ny.gov/public/36929.html. This furthers the overarching
goal of the Brownfield Program by driving development toward the poorest
and most contaminated areas of the state. The current En-Zone defi-
nition, which is based solely on high poverty and unemployment Census
data, frequently does not capture these areas since the U.S. Census
Bureau typically creates separate Census tracks for unpopulated indus-
trial areas. Therefore, many brownfield areas which adversely affect
underserved communities are not located in En-Zones but are adjacent to
these areas.

Section 7 amends Section 31 of part H of chapter 1 of the laws of 2003,
extending from December 31, 2022 to December 31, 2027 the BCP acceptance
date for sites to be eligible for brownfield redevelopment tax credits ,
and the last date to receive a certificate of completion to qualify for
such credits from March 31, 2026 to December 31, 2031. Certificates of
Completion are typically earned at the end of the calendar year; there-
fore, using a March date in this provision as opposed to a December date
would impose undue pressure on DEC to issue COCs in the first quarter
rather than on the usual calendar year schedule, and would leave a
number of projects without the ability to earn their certificates of
completion by the end of the calendar year.

Section 8 deems En-Zones under new paragraph (7) of Section 21(b) of the
Tax Law to be in effect on and after January 1, 2021.

Section 9 contains the effective date provisions.

 
JUSTIFICATION:

The Brownfield Cleanup Program incentivizes private-sector redevelopment
of contaminated brownfield sites across New York State.  Due to the
COVID-19 Pandemic, land use approvals ceased for periods of time and
then only resumed slowly, construction ceased or significantly slowed
down with new COVID-19 restrictions, and the urban residential and
commercial real estate market in general is suffering from excess inven-
tory, as well as difficulty in finding debt financing and equity
contributors for projects. As the economy slowly begins to revitalize,
which is likely to take several years (particularly for urban centers
across the State), it is important to extend the entire Brownfield
Cleanup Program and the timeframe to construct a building after earning
a Certificate of Completion to ensure that environmentally friendly
projects on brownfield sites, which are significantly benefiting our
urban core cities both upstate and downstate, continue throughout this
state.

Finally, the bill further incentivizes developers to pursue brownfield
projects in highly concentrated brownfield opportunity areas and envi-
ronmental justice communities.
 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This Act shall take effect immediately.

2021-S7210 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7210
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               June 7, 2021
                                ___________
 
 Introduced by Sens. KENNEDY, KAMINSKY -- read twice and ordered printed,
   and when printed to be committed to the Committee on Rules
 
 AN  ACT  to amend the environmental conservation law and the tax law, in
   relation to eligibility for participation in  the  brownfield  cleanup
   program,  assignment  of  the brownfield redevelopment tax credits and
   brownfield opportunity areas; and to amend part H of chapter 1 of  the
   laws  of  2003, amending the tax law relating to brownfield redevelop-
   ment tax credits, remediated brownfield credit for real property taxes
   for qualified sites and environmental remediation  insurance  credits,
   in relation to tax credits for certain sites
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 29 of  section  27-1405  of  the  environmental
 conservation  law, as added by section 2 of part BB of chapter 56 of the
 laws of 2015, is amended and a new subdivision 32 is added  to  read  as
 follows:
   29.  "Affordable  housing  project" SHALL MEAN EITHER (A) A PROJECT AS
 shall be defined in regulation by  the  department,  after  consultation
 with  the  division  of  housing and community renewal, which shall at a
 minimum, establish the percentage of units in the project that  must  be
 below  a  defined percentage of the area median income; OR (B) A PROJECT
 SITUATED ON A BROWNFIELD SITE THAT IS THE SUBJECT OF A DETERMINATION  BY
 A  STATE OR LOCAL GOVERNMENT HOUSING AGENCY THAT ALL OR A PORTION OF THE
 PROJECT OR SITE WILL QUALIFY FOR BENEFITS, INCLUDING BUT NOT LIMITED  TO
 REAL  PROPERTY  TAXATION EXEMPTIONS, UNDER AN AFFORDABLE HOUSING PROGRAM
 WHICH DEFINES A PERCENTAGE  OF  RESIDENTIAL  RENTAL  OR  HOME  OWNERSHIP
 DWELLING  UNITS  TO  BE DEDICATED TO TENANTS OR HOME OWNERS AT A DEFINED
 MAXIMUM PERCENTAGE OR PERCENTAGES OF AREA MEDIAN  INCOME  BASED  ON  THE
 OCCUPANTS' HOUSEHOLDS ANNUAL GROSS INCOME. FOR PURPOSES OF THIS SUBDIVI-
 SION,  "AREA  MEDIAN  INCOME"  SHALL MEAN THE AREA MEDIAN INCOME FOR THE
 PRIMARY METROPOLITAN STATISTICAL AREA  OR  FOR  THE  COUNTY  IF  LOCATED
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD11485-03-1

 S. 7210                             2
 
 OUTSIDE  A  METROPOLITAN  STATISTICAL  AREA, AS DETERMINED BY THE UNITED
 STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT OR ITS SUCCESSOR  FOR
 A FAMILY OF FOUR, AS ADJUSTED FOR FAMILY SIZE.
   32.  "CONFORMING  BOA  SITE"  SHALL MEAN A SITE LOCATED WITHIN AN AREA
 DESIGNATED BY THE SECRETARY OF STATE AS A  BROWNFIELD  OPPORTUNITY  AREA
 PURSUANT  TO SECTION NINE HUNDRED SEVENTY-R OF THE GENERAL MUNICIPAL LAW
 AND FOR WHICH THE SECRETARY OF STATE HAS ISSUED AN AFFIRMATIVE  CONFORM-
 ANCE  DETERMINATION  PURSUANT TO SUBDIVISION TEN OF SECTION NINE HUNDRED
 SEVENTY-R OF THE GENERAL MUNICIPAL LAW.
   § 2. Subdivision 1-a of section 27-1407 of the environmental conserva-
 tion law, as added by section 3 of part BB of chapter 56 of the laws  of
 2015, is amended to read as follows:
   1-a.  If  the  person is also seeking a determination that the site is
 eligible for the tangible property credit component  of  the  brownfield
 redevelopment  tax credit pursuant to paragraph three of subdivision (a)
 of section twenty-one of the tax law for a site located in a city having
 a population of one million or more, such person shall  submit  informa-
 tion  sufficient to demonstrate that: (a) at least half of the site area
 is located in an environmental zone as defined in section twenty-one  of
 the  tax  law;  (b) the property is upside down or underutilized; or (c)
 the project is an affordable housing project AS DESCRIBED  IN  PARAGRAPH
 (A)  OF    SUBDIVISION  TWENTY-NINE OF SECTION 27-1405 OF THIS TITLE. An
 applicant may request an eligibility determination for tangible property
 credits at any time from application until the site receives  a  certif-
 icate  of  completion  [pursuant to section 27-1419 of this title except
 for  sites  seeking  eligibility  under  the  underutilized   category].
 NOTWITHSTANDING  THE  FOREGOING, A SITE LOCATED IN A CITY HAVING A POPU-
 LATION OF ONE MILLION OR MORE AND WHICH IS  A  CONFORMING  BOA  SITE  OR
 WHICH  IS  DESCRIBED  IN  PARAGRAPH  (B)  OF  SUBDIVISION TWENTY-NINE OF
 SECTION 27-1405 OF THIS TITLE, SHALL ALSO BE ELIGIBLE FOR  THE  TANGIBLE
 PROPERTY  CREDIT  COMPONENT  OF  THE BROWNFIELD REDEVELOPMENT TAX CREDIT
 PURSUANT TO PARAGRAPH THREE OF SUBDIVISION (A) OF SECTION TWENTY-ONE  OF
 THE TAX LAW.
   Sites  are  not eligible for tangible property tax credits if: (a) the
 contamination from ground water or soil vapor is solely  emanating  from
 property  other than the site subject to the present application; or (b)
 the department has determined that  the  property  has  previously  been
 remediated  pursuant to titles nine, thirteen and fourteen of this arti-
 cle, title five of article fifty-six of this chapter and article  twelve
 of  the  navigation  law  such  that  it  may  be developed for its then
 intended use.
   § 3. Subparagraph (i) of paragraph 3 of subdivision (a) of section  21
 of  the tax law, as amended by section 1 of part AA of chapter 58 of the
 laws of 2021, is amended to read as follows:
   (i) The tangible property credit  component  shall  be  equal  to  the
 applicable  percentage of 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 and may include any related party
 service fee paid; provided that in determining the cost or  other  basis
 of such property, the taxpayer shall exclude the acquisition cost of any
 item  of  property with respect to which a credit under this section was
 allowable to another taxpayer. A related  party  service  fee  shall  be
 allowed  only  in the calculation of the tangible property credit compo-
 nent and shall not be allowed in the calculation of the site preparation
 credit component or the on-site groundwater  remediation  credit  compo-

 S. 7210                             3
 
 nent.  The  portion  of  the tangible property credit component which is
 attributable to related party service fees  shall  be  allowed  only  as
 follows: (A) in the taxable year in which the qualified tangible proper-
 ty  described  in  subparagraph  (iii)  of  this  paragraph is placed in
 service, for that portion of the related party service fees  which  have
 been earned and actually paid to the related party on or before the last
 day of such taxable year; and (B) with respect to any other taxable year
 for  which  the  tangible property credit component may be claimed under
 this subparagraph and in which the  amount  of  any  additional  related
 party  service  fees  are  actually  paid by the taxpayer to the related
 party, the tangible property credit component for such amount  shall  be
 allowed  in such taxable year. The credit component amount so determined
 shall be allowed for the taxable year in which such  qualified  tangible
 property  is first placed in service on a qualified site with respect to
 which a certificate of completion has been issued to  the  taxpayer,  or
 for the taxable year in which the certificate of completion is issued if
 the  qualified tangible property is placed in service prior to the issu-
 ance of the certificate of completion. This credit component shall  only
 be  allowed  for  up  to one hundred twenty months after the date of the
 issuance of such certificate of completion[, provided, however, that for
 qualified sites to which a certificate of completion  is  issued  on  or
 after March twentieth, two thousand ten, but prior to January first, two
 thousand twelve, the commissioner may extend the credit component for up
 to one hundred forty-four months after the date of such issuance, if the
 commissioner,  in  consultation  with  the commissioner of environmental
 conservation, determines that the requirements for the credit would have
 been met if not for the restrictions related to the state disaster emer-
 gency declared pursuant to executive order 202 of 2020 or any  extension
 thereof  or  subsequent  executive order issued in response to the novel
 coronavirus (COVID-19) pandemic]; PROVIDED, HOWEVER, WITH RESPECT TO ANY
 QUALIFIED SITE FOR WHICH THE DEPARTMENT  OF  ENVIRONMENTAL  CONSERVATION
 HAS  ISSUED  A  NOTICE  TO  THE TAXPAYER BEFORE JULY FIRST, TWO THOUSAND
 FIFTEEN OR THE DATE OF PUBLICATION IN THE  STATE  REGISTER  OF  PROPOSED
 REGULATIONS  DEFINING  "UNDERUTILIZED" AS PROVIDED IN SUBDIVISION THIRTY
 OF SECTION 27-1405 OF  THE  ENVIRONMENTAL  CONSERVATION  LAW,  WHICHEVER
 SHALL  BE  LATER,  THAT  ITS REQUEST FOR PARTICIPATION HAS BEEN ACCEPTED
 UNDER SUBDIVISION SIX OF SECTION 27-1407 OF THE ENVIRONMENTAL  CONSERVA-
 TION  LAW,  THIS  CREDIT  COMPONENT  SHALL ONLY BE ALLOWED FOR UP TO ONE
 HUNDRED EIGHTY MONTHS AFTER THE DATE OF THE ISSUANCE OF SUCH CERTIFICATE
 OF COMPLETION; PROVIDED, HOWEVER, WITH RESPECT TO ANY QUALIFIED SITE FOR
 WHICH THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION HAS ISSUED  A  NOTICE
 TO THE TAXPAYER ON OR AFTER JULY FIRST, TWO THOUSAND FIFTEEN OR THE DATE
 OF  PUBLICATION  IN  THE STATE REGISTER OF PROPOSED REGULATIONS DEFINING
 "UNDERUTILIZED" AS PROVIDED IN SUBDIVISION THIRTY OF SECTION 27-1405  OF
 THE  ENVIRONMENTAL  CONSERVATION LAW, WHICHEVER SHALL BE LATER, THAT ITS
 REQUEST FOR PARTICIPATION HAS BEEN ACCEPTED  UNDER  SUBDIVISION  SIX  OF
 SECTION 27-1407 OF THE ENVIRONMENTAL CONSERVATION LAW, OR WHICH RECEIVED
 SUCH  NOTICE  OF  ACCEPTANCE  PRIOR TO THAT DATE BUT IS ELIGIBLE FOR THE
 BROWNFIELD REDEVELOPMENT TAX CREDITS AS IF THE SITE  WAS  ACCEPTED  INTO
 THE  BROWNFIELD  CLEANUP  PROGRAM AFTER THAT DATE AS PROVIDED IN SECTION
 THIRTY-THREE OF CHAPTER FIFTY-SIX OF THE LAWS OF TWO  THOUSAND  FIFTEEN,
 THIS CREDIT COMPONENT SHALL ONLY BE ALLOWED FOR UP TO ONE HUNDRED EIGHTY
 MONTHS AFTER THE DATE OF THE ISSUANCE OF SUCH CERTIFICATE OF COMPLETION.
   §  4.  Paragraph 2 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,  is
 amended to read as follows:

 S. 7210                             4
 
   (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 with respect to  a  quali-
 fied  site.  The credit component amount so determined with respect to a
 site's  qualification  for  a certificate of completion shall be allowed
 for the taxable 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 MARCH
 TWENTIETH, TWO THOUSAND FIFTEEN THE SITE  PREPARATION  CREDIT  COMPONENT
 FOR  SUCH COSTS SHALL BE ALLOWED FOR UP TO SEVEN TAXABLE YEARS AFTER THE
 CERTIFICATE OF COMPLETION; AND PROVIDED FURTHER THAT THE  CREDIT  COMPO-
 NENT  AMOUNT FOR ANY COSTS NECESSARY FOR COMPLIANCE WITH THE CERTIFICATE
 OF COMPLETION  OR  SUBSEQUENT  MODIFICATIONS  THEREOF  OR  THE  REMEDIAL
 PROGRAM  DEFINED IN SUCH CERTIFICATE WHICH WERE PAID OR INCURRED BUT NOT
 INCLUDED IN THE CALCULATION OF A CREDIT ALLOWED UNDER  THIS  SECTION  IN
 ANY  TAXABLE YEAR BEGINNING PRIOR TO JANUARY FIRST, TWO THOUSAND TWENTY-
 ONE, SHALL BE ALLOWED FOR THE TAXPAYER'S FIRST TAXABLE YEAR BEGINNING ON
 OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE, AND THE  CREDIT  COMPO-
 NENT  AMOUNT  FOR  ANY  SUCH  COSTS PAID OR INCURRED IN ANY TAXABLE YEAR
 BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND  TWENTY-ONE  SHALL  BE
 ALLOWED  IN  THE  TAXABLE YEAR SUCH COSTS ARE PAID OR INCURRED FOR UP TO
 SEVEN TAXABLE YEARS AFTER THE ISSUANCE OF THE CERTIFICATE OF COMPLETION.
   § 5. Paragraph 2 of subdivision (b) of section 21 of the tax  law,  as
 amended  by  section 23 of part BB of chapter 56 of the laws of 2015, is
 amended to read as follows:
   (2) Site preparation costs. The term "site  preparation  costs"  shall
 mean  all  amounts  properly  chargeable to a capital account, which are
 paid or incurred which are necessary  to  implement  a  site's  investi-
 gation,  remediation,  or qualification for a certificate of completion,
 and shall include costs of: excavation; demolition; activities undertak-
 en under the oversight of the department of labor or in accordance  with
 standards  established  by  the  department  of  health to remediate and
 dispose of regulated materials including asbestos, lead  or  polychlori-
 nated  biphenyls;  environmental  consulting;  engineering; legal costs;
 transportation, disposal, treatment or containment of contaminated soil;
 remediation measures taken to address  contaminated  soil  vapor;  cover
 systems  consistent  with  applicable  regulations;  physical support of
 excavation; dewatering and other work to facilitate  or  enable  remedi-
 ation  activities;  sheeting,  shoring,  and  other engineering controls
 required to prevent off-site migration of contamination from the  quali-
 fied  site  or migrating onto the qualified site; and the costs of fenc-
 ing, temporary electric wiring,  scaffolding,  and  security  facilities
 until  such  time as the certificate of completion has been issued. Site
 preparation shall include all costs paid or incurred within sixty months
 after the last  day  of  the  tax  year  in  which  the  certificate  of
 completion  is issued that are necessary for compliance with the certif-
 icate of completion or subsequent modifications thereof, or the remedial
 program defined in such certificate  of  completion  including  but  not
 limited  to  institutional  controls,  engineering controls, an approved
 site management plan, and an environmental easement with respect to  the
 qualified  site;  PROVIDED,  HOWEVER, WITH RESPECT TO ANY QUALIFIED SITE
 FOR WHICH THE DEPARTMENT OF  ENVIRONMENTAL  CONSERVATION  HAS  ISSUED  A

 S. 7210                             5
 
 NOTICE  TO  THE TAXPAYER ON OR AFTER JULY FIRST, TWO THOUSAND FIFTEEN OR
 THE DATE OF PUBLICATION IN THE STATE REGISTER  OF  PROPOSED  REGULATIONS
 DEFINING  "UNDERUTILIZED"  AS  PROVIDED IN SUBDIVISION THIRTY OF SECTION
 27-1405 OF THE ENVIRONMENTAL CONSERVATION LAW, WHICHEVER SHALL BE LATER,
 THAT  ITS  REQUEST FOR PARTICIPATION HAS BEEN ACCEPTED UNDER SUBDIVISION
 SIX OF SECTION 27-1407 OF THE ENVIRONMENTAL CONSERVATION LAW, SITE PREP-
 ARATION SHALL INCLUDE ALL COSTS  PAID  OR  INCURRED  WITHIN  EIGHTY-FOUR
 MONTHS  AFTER  THE  LAST DAY OF THE TAX YEAR IN WHICH THE CERTIFICATE OF
 COMPLETION IS ISSUED THAT ARE NECESSARY FOR COMPLIANCE WITH THE  CERTIF-
 ICATE OF COMPLETION OR SUBSEQUENT MODIFICATIONS THEREOF, OR THE REMEDIAL
 PROGRAM  DEFINED  IN  SUCH  CERTIFICATE  OF COMPLETION INCLUDING BUT NOT
 LIMITED TO INSTITUTIONAL CONTROLS,  ENGINEERING  CONTROLS,  AN  APPROVED
 SITE  MANAGEMENT PLAN, AND AN ENVIRONMENTAL EASEMENT WITH RESPECT TO THE
 QUALIFIED SITE. Site preparation cost shall not  include  the  costs  of
 foundation  systems  that  exceed  the  cover system requirements in the
 regulations applicable to the qualified site.
   § 6. Subdivision (b) of section 21 of the tax law is amended by adding
 a new paragraph 7 to read as follows:
   (7) CERTAIN ENVIRONMENTAL ZONES (EN-ZONES).  AN  "ENVIRONMENTAL  ZONE"
 SHALL  MEAN, WITH RESPECT TO ANY QUALIFIED SITE FOR WHICH THE DEPARTMENT
 OF ENVIRONMENTAL CONSERVATION HAS ISSUED A NOTICE TO THE TAXPAYER ON  OR
 AFTER JULY FIRST, TWO THOUSAND FIFTEEN OR THE DATE OF PUBLICATION IN THE
 STATE  REGISTER  OF  PROPOSED  REGULATIONS  DEFINING  "UNDERUTILIZED" AS
 PROVIDED IN SUBDIVISION THIRTY OF SECTION 27-1405 OF  THE  ENVIRONMENTAL
 CONSERVATION LAW, WHICHEVER SHALL BE LATER, THAT ITS REQUEST FOR PARTIC-
 IPATION  HAS  BEEN  ACCEPTED UNDER SUBDIVISION SIX OF SECTION 27-1407 OF
 THE ENVIRONMENTAL CONSERVATION LAW:
   (A) AN AREA DESIGNATED AS SUCH BY  THE  COMMISSIONER  OF  LABOR.  SUCH
 AREAS SHALL BE CENSUS TRACTS THAT SATISFY EITHER OF THE FOLLOWING CRITE-
 RIA:
   (I) AREAS THAT HAVE BOTH:
   (I) A POVERTY RATE OF AT LEAST TWENTY PERCENT BASED ON THE MOST RECENT
 FIVE YEAR AMERICAN COMMUNITY SURVEY; AND
   (II)  AN  UNEMPLOYMENT  RATE OF AT LEAST ONE AND ONE-QUARTER TIMES THE
 STATEWIDE UNEMPLOYMENT RATE BASED ON THE MOST RECENT FIVE YEAR  AMERICAN
 COMMUNITY SURVEY, OR;
   (II)  AREAS THAT HAVE A POVERTY RATE OF AT LEAST TWO TIMES THE POVERTY
 RATE FOR THE COUNTY IN WHICH THE AREAS ARE LOCATED  BASED  ON  THE  MOST
 RECENT FIVE YEAR AMERICAN COMMUNITY SURVEY.
   (III)  SUCH  DESIGNATION SHALL BE MADE AND A LIST OF ALL SUCH ENVIRON-
 MENTAL ZONES SHALL BE ESTABLISHED BY THE COMMISSIONER OF LABOR BASED  ON
 THE MOST RECENT AMERICAN COMMUNITY SURVEY, OR ITS SUCCESSOR.
   (B)  AN AREA DESIGNATED BY THE COMMISSIONER OF THE DEPARTMENT OF ENVI-
 RONMENTAL CONSERVATION TO BE A POTENTIAL ENVIRONMENTAL JUSTICE AREA.
   (I) "POTENTIAL ENVIRONMENTAL JUSTICE AREA" MEANS A MINORITY OR LOW-IN-
 COME COMMUNITY THAT MAY BEAR A DISPROPORTIONATE SHARE  OF  THE  NEGATIVE
 ENVIRONMENTAL  CONSEQUENCES  RESULTING  FROM  INDUSTRIAL, MUNICIPAL, AND
 COMMERCIAL OPERATIONS OR THE EXECUTION OF  FEDERAL,  STATE,  LOCAL,  AND
 TRIBAL  PROGRAMS AND POLICIES AND WHICH ARE SHOWN ON MAPS CREATED BY THE
 DEPARTMENT OF ENVIRONMENTAL CONSERVATION.
   (II) "MINORITY COMMUNITY" MEANS A CENSUS BLOCK  GROUP,  OR  CONTIGUOUS
 AREA  WITH  MULTIPLE  CENSUS  BLOCK GROUPS, HAVING A MINORITY POPULATION
 EQUAL TO OR GREATER THAN 51.1 PERCENT IN AN URBAN AREA AND 33.8  PERCENT
 IN A RURAL AREA OF THE TOTAL POPULATION.

 S. 7210                             6
 
   (III)  "MINORITY  POPULATION" MEANS A POPULATION THAT IS IDENTIFIED OR
 RECOGNIZED BY THE UNITED STATES CENSUS BUREAU AS HISPANIC, AFRICAN-AMER-
 ICAN OR BLACK, ASIAN AND PACIFIC ISLANDER OR AMERICAN INDIAN.
   (IV)  "LOW-INCOME COMMUNITY" MEANS A CENSUS BLOCK GROUP, OR CONTIGUOUS
 AREA WITH MULTIPLE CENSUS BLOCK GROUPS, HAVING A  LOW-INCOME  POPULATION
 EQUAL TO OR GREATER THAN 23.59 PERCENT OF THE TOTAL POPULATION.
   (V) "LOW-INCOME POPULATION" MEANS A POPULATION HAVING AN ANNUAL INCOME
 THAT  IS  LESS THAN THE POVERTY THRESHOLD, AS SUCH THRESHOLDS ARE ESTAB-
 LISHED BY THE UNITED STATES CENSUS BUREAU.
   (VI) "CENSUS BLOCK GROUP" MEANS A UNIT FOR THE  UNITED  STATES  CENSUS
 USED  FOR  REPORTING.  CENSUS BLOCK GROUPS GENERALLY CONTAIN BETWEEN TWO
 HUNDRED FIFTY AND FIVE HUNDRED HOUSING UNITS.
   (VII) "URBAN AREA" MEANS ALL TERRITORY, POPULATION, AND HOUSING  UNITS
 LOCATED IN URBANIZED AREAS AND IN PLACES OF TWO THOUSAND FIVE HUNDRED OR
 MORE  INHABITANTS  OUTSIDE  OF AN URBANIZED AREA. AN URBANIZED AREA IS A
 CONTINUOUSLY BUILT-UP AREA WITH A POPULATION OF FIFTY THOUSAND OR MORE.
   (VIII) "RURAL AREA" MEANS TERRITORY,  POPULATION,  AND  HOUSING  UNITS
 THAT  ARE  NOT CLASSIFIED AS AN URBAN AREA.  THE DETERMINATION WHETHER A
 SITE IS LOCATED IN AN ENVIRONMENTAL ZONE PURSUANT  TO  THIS  SUBDIVISION
 SHALL  BE BASED ON THE DATE THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
 ISSUED A NOTICE TO THE TAXPAYER THAT ITS REQUEST  FOR  PARTICIPATION  IN
 THE  BROWNFIELD  CLEANUP  PROGRAM  HAS  BEEN DEEMED COMPLETE PURSUANT TO
 SUBDIVISION THREE OF SECTION 27-1407 OF THE  ENVIRONMENTAL  CONSERVATION
 LAW; PROVIDED, HOWEVER, IF THE AREA IN WHICH A SITE IS LOCATED IS DESIG-
 NATED  AN  ENVIRONMENTAL  ZONE SUBSEQUENT TO THE ISSUANCE OF SUCH NOTICE
 AND BEFORE QUALIFIED TANGIBLE PROPERTY AS DEFINED IN PARAGRAPH THREE  OF
 THIS  SUBDIVISION  IS  PLACED  IN SERVICE, THEN THE SITE SHALL BE DEEMED
 LOCATED IN AN ENVIRONMENTAL ZONE.
   § 7. Section 31 of part H of chapter 1 of the laws of  2003,  amending
 the tax law relating to brownfield redevelopment tax credits, remediated
 brownfield  credit for real property taxes for qualified sites and envi-
 ronmental remediation insurance credits, as amended  by  section  32  of
 part  BB  of  chapter  56  of  the  laws  of 2015, is amended to read as
 follows:
   § 31. The tax credits allowed under section 22 or 23 of  the  tax  law
 and  the  corresponding  provisions in articles 9, 9-A, 22 and 33 of the
 tax law, as added by the provisions of sections one through  twenty-nine
 of  this  act,  shall  not  be  applicable to any site accepted into the
 brownfield cleanup program on and after July 1,  2015  or  the  date  of
 publication  in  the  state  register  of  proposed regulations defining
 "underutilized" as provided in subdivision 30 of section 27-1405 of  the
 environmental  conservation law, whichever shall be later. The tax cred-
 its allowed under section 21  of  the  tax  law  and  the  corresponding
 provisions in articles 9, 9-A, 22 and 33 of the tax law, as added by the
 provisions of sections one through twenty-nine of this act, shall not be
 applicable  to  any  site  accepted  into the brownfield cleanup program
 after December  31,  [2022]  2027,  provided,  however  that  any  sites
 accepted  on  or  before December 31, [2022] 2027 must have received the
 certificate of completion required to qualify for any of such credits on
 or before [March] DECEMBER 31, [2026] 2031.
   § 8. A site which is in a potential  environmental  justice  area,  as
 defined  in clause (i) of subparagraph (B) of paragraph 7 of subdivision
 (b) of section 21 of the tax law, as of the effective date of  this  act
 shall be deemed to be in an environmental zone from and after January 1,
 2021  for all purposes including but not limited to the site's eligibil-
 ity for the tangible property credit component under subdivision 1-a  of

 S. 7210                             7
 
 section  27-1407  of  the  environmental conservation law and the calcu-
 lation of the brownfield redevelopment tax credit pursuant to section 21
 of the tax law as amended by this act for all taxable years beginning on
 or after January 1, 2021.
   § 9. This act shall take effect immediately; provided, however:
   (a)  The  amendments  made  by  sections one and two of this act shall
 apply to sites for which the department  of  environmental  conservation
 has  issued a notice to the applicant that its request for participation
 has been accepted under subdivision 6 of section 27-1407 of the environ-
 mental  conservation  law,  regardless  of  the  date  of  such  notice;
 provided,  however,  that the amendments made by section two of this act
 regarding eligibility for the tangible property credit component of  the
 brownfield redevelopment tax credit under paragraph 3 of subdivision (a)
 of  section  21 of the tax law shall apply to taxable years beginning on
 and after January 1, 2021; and
   (b) a site which is in a potential environmental justice  area  as  of
 such  effective date shall be deemed to be in an environmental zone from
 and after January 1, 2021 for all purposes including but not limited  to
 the  site's eligibility for the tangible property credit component under
 subdivision 1-a of section 27-1407 of the environmental conservation law
 and the calculation of the brownfield redevelopment tax credit  pursuant
 to  section  21  of  the  tax law as amended by this act for all taxable
 years beginning on and after January 1, 2021.

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Senate Bill S7210

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Archive: Last Bill Status - In Senate Committee Environmental Conservation Committee

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Sponsored By

Timothy M. Kennedy

Archive: Last Bill Status - In Senate Committee Environmental Conservation Committee

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co-Sponsors

Jeremy Cooney

Todd Kaminsky

Rachel May

2021-S7210 (ACTIVE) - Details

2021-S7210 (ACTIVE) - Summary

2021-S7210 (ACTIVE) - Sponsor Memo

2021-S7210 (ACTIVE) - Bill Text download pdf

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