Senate Bill S10519A

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                 10519--A
 
                             I N  S E N A T E
 
                               May 15, 2026
                                ___________
 
 Introduced  by Sen. GONZALEZ -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment  Operations  --  committee  discharged,  bill  amended,   ordered
   reprinted as amended and recommitted to said committee
 
 AN ACT to amend the tax law, in relation to the tangible property credit
   component of the brownfield redevelopment tax credit

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraph (i) of  paragraph  3  of  subdivision  (a)  of
 section 21 of  the tax law, as amended by section 2 of subpart B of part
 J of chapter 59 of the laws of 2023, 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;  and  provided  further  that  for the
 purposes of this section, starting with taxable year two thousand  twen-
 ty-two,  on  sites  that comply with the track one remediation standards
 promulgated pursuant to subdivision four of section 27-1415 of the envi-
 ronmental conservation law, stadiums, baseball parks, basketball  courts
 and  other  athletic  facilities shall be considered buildings, and that
 components of stadiums, baseball parks,  basketball  courts,  and  other
 athletic  facilities  constructed  on such sites, including sports field
 turf, site  lighting,  sidewalks,  access  and  entry  ways,  and  other
 improvements added to land, shall be considered structural components of
 buildings  under the internal revenue code, and shall be included in the
 definition of tangible property for the  purposes  of  this  section.  A
 related  party  service  fee shall be allowed only in the calculation of
 the tangible property credit component and shall not be allowed  in  the
 calculation  of  the  site  preparation  credit component or the on-site
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15926-03-6
 S. 10519--A                         2
 
 groundwater remediation credit component. 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 property 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 compo-
 nent amount so determined shall be allowed for the taxable year in which
 such  qualified tangible property is first placed in service on a quali-
 fied 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 issuance 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 require-
 ments for the credit would have been met if  not  for  the  restrictions
 related  to  the state disaster emergency 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  certificate  of
 completion to the taxpayer on or after March twentieth, two thousand ten
 and  before  December  thirty-first,  two  thousand fifteen, this credit
 component shall be allowed for up to one hundred eighty months after the
 date of the issuance of such certificate of completion; PROVIDED, HOWEV-
 ER, THAT FOR QUALIFIED SITES LOCATED IN COUNTIES WITH  A  POPULATION  OF
 GREATER  THAN TWO MILLION TWO HUNDRED THOUSAND AND LESS THAN TWO MILLION
 FIVE HUNDRED THOUSAND BASED ON THE LATEST FEDERAL DECENNIAL CENSUS,  FOR
 WHICH  THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION HAS ISSUED A CERTIF-
 ICATE OF COMPLETION TO THE TAXPAYER ON OR AFTER JANUARY FIRST, TWO THOU-
 SAND SEVENTEEN AND PRIOR TO JANUARY FIRST, TWO  THOUSAND  EIGHTEEN,  BUT
 WHICH  CANNOT COMMENCE DEVELOPMENT DUE TO ENVIRONMENTAL HAZARDS POSED BY
 AN ADJACENT NEW YORK POWER AUTHORITY PEAKER PLANT FACILITY,  THE  CREDIT
 COMPONENT SHALL BE ALLOWED FOR UP TO ONE HUNDRED EIGHTY MONTHS AFTER THE
 DATE  OF  THE  ISSUANCE OF SUCH CERTIFICATE OF COMPLETION; PROVIDED THAT
 SUCH PROPERTY INCLUDES A MINIMUM OF FORTY  PERCENT  PUBLICLY  ACCESSIBLE
 OPEN  SPACE,  AND  A  MINIMUM  OF TWENTY-FIVE PERCENT AFFORDABLE HOUSING
 UNITS IN COMPLIANCE WITH SUBDIVISION (A) OF SECTION FOUR HUNDRED  EIGHT-
 Y-FIVE-X  OF  THE  REAL  PROPERTY  TAX  LAW;  and provided further, with
 respect to any qualified site located in cities with a population great-
 er than two hundred five thousand and  less  than  two  hundred  fifteen
 thousand in counties with a population greater than one million but less
 than  one  million  ten  thousand  based on the latest federal decennial
 census for which the department of environmental conservation has issued
 a certificate of completion to the taxpayer on or after  January  first,
 S. 10519--A                         3
 
 two  thousand  seventeen  and before December thirty-first, two thousand
 seventeen, this credit component shall be allowed for up to one  hundred
 eighty  months  after  the  date  of the issuance of such certificate of
 completion.
   § 2. This act shall take effect immediately.