The Brownfield Cleanup Program (BCP) was established in Chapter 1 of the Laws of 2003 and amended in 2008.  The BCP provides benefits for the cleanup and redevelopment of brownfield sites including liability relief and tax credits.  Tax credits are provided in four areas; cleanup, redevelopment, real property taxes and for the purchase of environmental insurance.  
 
The law directed ESD to designate Environmental Zones (“En-Zones”) in which these tax credits are enhanced. Designation of En-Zones is limited to Eligible Census Tracts with a poverty rate of at least 20% according to the 2000 Census and an unemployment rate of at least 125% of the New York State average, or a poverty rate of at least double the rate for the county in which the tract is located.
 

Program Purpose
To encourage cleanup and redevelopment of brownfields sites across New York State by providing incentives such as liability relief and tax credits. 

 

Program Highlights
Credit for Remediation of Brownfield Sites

Site Preparation and On-Site Remediation Credit Components

• Covers site preparation and on-site groundwater cleanup
• Includes remediation, demolition, excavation, fencing, security and other capital costs to make the site usable for redevelopment, excluding site acquisition costs
• Tax credits range from 22-50% of the total cost of  remediation, based on the level of cleanup 

 

Tangible Property Credit Component

• Covers costs of buildings and improvements, including structural components of buildings, that are placed into service within 10 years after a certificate of completion is issued for the site cleanup
• Credits range from 10-24% of eligible costs with the base credit being increased based on level of cleanup, location of site in and En-Zone, and, redevelopment of site in conformance with a Brownfield Opportunity Area plan
• Tax credits are capped as follows: 
  • Non-manufacturing projects capped at $35 million or three times the site preparation and on-site groundwater remediation costs, whichever is less.
  • Manufacturing projects capped at $45 million or six times the site preparation and on-site groundwater remediation costs, whichever is less.

 

Real Property Tax Credit

• Tax Credit for portion of real property taxes for a qualified remediated site
• Amount determined by a formula based on the number of employees on the site up to $10,000 per employee 
  

Remediation Insurance Credit

• For premiums paid for Environmental Remediation Insurance
• Capped at 50 % of the cost of the premium or $30,000, whichever is less

 

Eligibility

Eligible

• Sites must be eligible for and accepted into the Brownfield Cleanup Program
• Applicant must complete approved cleanup plan and obtain a Certificate of completion
  

 

Not Eligible

• Sites listed as a Class 1 or Class 2 in the New York State Registry of Inactive Hazardous Waste Disposal sites
• Sites listed on the National Priorities List
• Sites subject to certain state or federal enforcement actions
   
  

The program is administered by the New York State Departments of Environmental Conservation and Taxation and Finance.  


Contact Information
Empire State Development: (518) 292-5348
NYS Department of Tax & Finance: (518) 485-6027
NYS Department of Environmental Conservation: (518) 402-9764
 
 
Additional Resources
Brownfield Cleanup Program Tax Credit Fact Sheet
Print out this program's Quick Sheet
Publication 300 Brownfield Tax Credits