What's happening
This bill creates a tax credit for asbestos remediation costs in qualified structures in New York State.
Why it matters
Incentivizes Safety Upgrades in Aging Buildings. By targeting structures placed in service at least 25 years ago, the bill encourages remediation in older buildings where asbestos hazards are most likely, potentially improving public health and safety in communities with aging infrastructure.
Promotes Investment by Multiple Property Types. The credit applies to residential, commercial, industrial, recreational, and environmental conservation buildings, meaning both homeowners and businesses can benefit, potentially stimulating broader revitalization and redevelopment efforts.
Reduces Financial Barriers for Remediation. Covering 20% of eligible asbestos remediation costs (up to $1 million over three years), the credit lessens the often prohibitive expense of safe asbestos removal, possibly leading to more comprehensive and timely abatement projects.
Ensures Compliance and Limits Abuse. Credits are only available for projects completed according to strict state regulations, and expenses cannot be double-counted for other tax credits, helping ensure projects are legitimate and funds are used appropriately.
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Who cares
Headline styles
Asbestos Cleanup Tax Credit
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 62
1 Co-sponsor
History
- Print number 689a
- Amend and recommit to investigations and government operations
- Referred to investigations and government operations
- Returned to senate
- Died in assembly
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 48–12
- Ordered to third reading cal.1684
- Committee discharged and committed to rules
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Asbestos Cleanup Tax Credit
In Assembly Committee · Ways And Means · Sponsor Sean Ryan
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
689--A
2017-2018 Regular Sessions
IN SENATE
January 4, 2017
Introduced by Sens. ORTT, KENNEDY -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- recommitted to the Committee on Investigations and Government Operations in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to providing an asbestos remediation tax credit
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The tax law is amended by adding a new section 23-a to read as follows:
§ 23-a. Asbestos remediation credit. (a) Definitions. As used in this section, the following terms shall have the following meanings:
(1) Qualified structure. "Qualified structure" shall mean (i) a building, principally used by the taxpayer for residential, industrial, commercial, recreational or environmental conservation purposes, and (ii) which was originally placed in service at least twenty-five years prior to the taxable year in which the credit is claimed.
(2) Eligible costs. "Eligible costs" shall mean all amounts properly chargeable to a capital account, which are incurred in direct connection to asbestos remediation of a qualified asbestos project.
(3) Qualified asbestos project. "Qualified asbestos project" shall be an asbestos project as defined in section nine hundred one of the labor law and undertaken by the taxpayer, on a qualified structure, and completed pursuant to the applicable regulations at part fifty-six of title twelve of the official compilation of rules and regulations of the state.
(b) Asbestos remediation credit. (1) Allowance of credit. A taxpayer who has undertaken a qualified asbestos project on a qualified structure, and who is subject to tax under article nine, nine-A or twenty-two
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04320-02-8
S. 689--A 2
of this chapter, shall be allowed a credit against such tax, pursuant to the provisions referenced in subdivision (c) of this section.
(2) Amount of credit. The amount of the credit shall be twenty percent of all eligible costs which are incurred in the taxable year, as a result of asbestos remediation with a completed qualified asbestos project. The credit shall be allowed for the taxable year in which the qualified asbestos project is first commenced and for the next two succeeding taxable years. The credit authorized pursuant to this section shall not exceed the total sum of one million dollars for the three taxable years allowed and claimed. The costs, expenses and other amounts for which a credit is allowed and claimed under this subdivision shall not be used in the calculation of any other credit allowed under this chapter.
(c) Cross-references. For application of the credit provided for in this section, see the following provisions of this chapter:
Article 9: Section 187-q.
Article 9-A: Section 210-B, subdivision 53.
Article 22: Section 606, subsections (i) and (ccc).
§ 2. The tax law is amended by adding a new section 187-q to read as follows:
§ 187-q. Asbestos remediation credit. 1. Allowance of credit. A taxpayer shall be allowed a credit, to be computed as provided in section twenty-three-a of this chapter, against the taxes imposed by this article. Provided, however, that the amount of such credit allowable against the tax imposed by section one hundred eighty-four of this article shall be the excess of the amount of such credit over the amount of any credit allowed by this section against the tax imposed by section one hundred eighty-three of this article.
2. Application of credit. The credit under this section for any taxable year shall not reduce the tax due for such year to less than the applicable minimum tax prescribed by this article. If, however, the amount of credit allowable under this section for any taxable year reduces the tax to such amount, any amount of credit not deductible in such taxable year shall be treated as an overpayment of tax to be refunded in accordance with the provisions of section one thousand eighty-six of this chapter. Provided, however, the provisions of subsection (c) of section one thousand eighty-eight of this chapter notwithstanding, no interest shall be paid thereon.
§ 3. Section 210-B of the tax law is amended by adding a new subdivision 53 to read as follows:
53. Asbestos remediation credit. (a) Allowance of credit. A taxpayer who has undertaken a qualified asbestos project on an existing structure shall be allowed a credit, to be computed as provided in section twenty-three-a of this chapter, against the tax imposed by this article.
(b) Application of credit. The credit allowed under this subdivision for any taxable year shall not reduce the tax due for such year to less than the higher amount prescribed in paragraph (d) of subdivision one of this section. However, if the amount of credits allowed under this subdivision for any taxable year reduces the tax to such amount, any amount of credit thus not deductible in such taxable year shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section one thousand eighty-six of this chapter. Provided, however, the provisions of subsection (c) of section one thousand eighty-eight of this chapter notwithstanding, no interest shall be paid thereon.
S. 689--A 3
§ 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xliv) to read as follows:
(xliv) Asbestos remediation Amount of credit under credit under subsection (ccc) subdivision fifty-three of
section two hundred ten-B
§ 5. Section 606 of the tax law is amended by adding a new subsection (ccc) to read as follows:
(ccc) Asbestos remediation credit. (1) Allowance of credit. A taxpayer who has undertaken a qualified asbestos project on an existing structure shall be allowed a credit, to be computed as provided in section twenty-three-a of this chapter, against the tax imposed by this article.
(2) Application of credit. If the amount of the credit allowed under this subsection for any taxable year shall exceed the taxpayer's tax for such year, the excess shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section six hundred eighty-six of this article, provided, however, that no interest shall be paid thereon.
§ 6. This act shall take effect immediately and shall apply to taxable years commencing on or after such date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to providing an asbestos remediation tax credit
PURPOSE:.
To create an asbestos tax credit to support remediation and economic development
Summary of specific provisions
Section one amends the tax law by adding a new section 23-a to provide an asbestos remediation tax credit. The amount of the credit shall be 20% of all eligible costs which are incurred in the taxable year, as a result of asbestos remediation with a qualified asbestos project. The credit shall not exceed one million dollars for the three taxable years allowed and claimed.
Sections two through five amend the tax law to provide for the allowance and application of an asbestos tax credit.
Section six provides the effective date.
Justification
Due to the presence of asbestos, structures in older, established neigh- borhoods throughout the State are faced with an uneven playing field for development and reinvestment. The costs necessary to safely and legally remediate asbestos from these structures (either for adaptive reuse or demolition and new build) are unfeasibly high and therefore perpetuate blight, abandonment and disinvestment.
Some of the larger, and potentially transformational projects in the State have asbestos remediation costs that are upwards of $4-5 million. Although these projects are not the norm, they represent the largest catalytic opportunities for economic redevelopment and reinvestment in our cities and regions. By placing a $1 million cap on claimable credits for asbestos remediation the State will guide transformational private capital investment into existing infrastructure and assets, and begin to address this real public safety concern and unavoidable hurdle to smart growth redevelopment.
Prior legislative history
S1671/A5365 (2013-14) Passed Senate; Print number 5365b S6524A Passed Senate in 2012 S2961/A. 6352 Passed Senate in 2016, Moved to Finance in 2017.
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately and shall apply to taxable years commencing on or after such date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.