Provides for the definition of "environmental zones" for purposes of the brownfield redevelopment tax credit

Title of bill

An act to amend the tax law, in relation to the definition of "environmental zones" for purposes of the brownfield redevelopment tax credit

Purpose

This bill amends the tax law to allow for the designation of environmental zones based on data from the most recent five estimate from the American Community Survey to ensure that the enhanced brown-field tax credits are going to projects located in the most economically distressed areas reflected by the most current economic data.

Summary of provisions

Section 1 amends the tax law to allow for the designation of environ- mental zones based on data from the most recent five year estimate from the American Community Survey, or data from the 2000 census. Projects that were accepted into the Brownfield Cleanup Program between January 1, 2011 and June 30, 2016 will receive the enhanced tax credits if they are located in an environmental zone based on either the most recent five year estimate from the American Community Survey or data from the 2000 census. Existing projects that are in an environmental zone pursuant to data from the 2000 census will continue to receive the enhanced tax credits.

Section 2 contains the effective date.

Justification

Under New York State's Brownfield Cleanup Program, tax credits are provided to taxpayers for the cleanup and redevelopment of contaminated brownfield sites. Additional enhanced tax credits are provided to taxpayers who rehabilitate contaminated sites that are located in economically depressed areas designated as environmental zones. Currently, environmental zones are designated by the Commissioner of Economic Development if the qualified site meets criteria based on data from the 2000 census. This bill amends the tax law to allow for the designation of environmental zones based on data from the most recent five year estimate from the American Community Survey, or data from the 2000 census. This important change will ensure that enhanced tax credits are going towards projects that are located in the most economically distressed areas based on the most recent economic data.

Legislative history

2013-14: S.7200/A.9711 Passed Senate/Referred to Ways and Means

Fiscal implications

None.

Effective date

This act shall take effect immediately and shall apply to any qualified sites for which the department of environmental conservation has issued a notice to the taxpayer on or after January 1, 2011 that its request for participation has been accepted under subdivision 6 of section 27-1407 of the environmental conservation law, provided, further, that the provisions of subparagraph (C) of paragraph (6) of subsection (ID; of section 21 of the tax law, as added by section one of this act shall apply to tax years beginning on and after January 1, 2016.