S T A T E O F N E W Y O R K
________________________________________________________________________
8930
I N S E N A T E
January 16, 2026
___________
Introduced by Sen. COONEY -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
ment Operations
AN ACT to amend the tax law, in relation to 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. Paragraph 2 of subdivision (b) of section 21 of the tax
law, as amended by section 1 of subpart B of part J of chapter 59 of the
laws of 2023, 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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14384-01-6
S. 8930 2
site management plan, and an environmental easement with respect to the
qualified site; provided, however, with respect to any qualified site
for which a certificate of completion was issued on or after July first,
two thousand fifteen but on or before June twenty-fourth, two thousand
twenty-one, site preparation 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 compli-
ance with the certificate of completion or subsequent modifications
thereof, or the remedial program defined in such certificate of
completion including but not limited to institutional controls, engi-
neering controls, an approved site management plan, and an environmental
easement with respect to the qualified site, provided, however, with
respect to any qualified site located in cities with a population great-
er than [two hundred five thousand] ONE HUNDRED SEVENTY-FIVE THOUSAND
and less than two hundred fifteen thousand in counties with a population
greater than [one million] SEVEN HUNDRED THOUSAND but less than one
million ten 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 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.
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.
§ 2. 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 chap-
ter 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
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
S. 8930 3
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; and provided
further, with respect to any qualified site located in cities with a
population greater than [two hundred five thousand] ONE HUNDRED SEVEN-
TY-FIVE THOUSAND and less than two hundred fifteen thousand in counties
with a population greater than [one million] SEVEN HUNDRED THOUSAND 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,
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.
§ 3. Paragraph 2 of subdivision (a) of section 21 of the tax law, as
amended by section 3 of subpart B of part J of chapter 59 of the laws of
2023, is amended to read as follows:
(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
S. 8930 4
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; and provided further, however, that
for any qualified site located in cities with a population greater than
[two hundred five thousand] ONE HUNDRED SEVENTY-FIVE THOUSAND and less
than two hundred fifteen thousand in counties with a population greater
than [one million] SEVEN HUNDRED THOUSAND 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, two thousand
seventeen and before December thirty-first, two thousand seventeen, the
site preparation credit component for such costs shall be allowed for up
to fifteen taxable years after the issuance of such certificate of
completion.
§ 4. This act shall take effect immediately.
