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Brownfield redevelopment tax credit

The tax rules and rates used to calculate your credit depend on the date the Department of Environmental Conservation (DEC) accepts your brownfield site into the Brownfield Cleanup Program (BCP). The rates and rules to use are based on the date of acceptance into the program occurring in one of the following three time periods:

Recordkeeping requirements

Taxpayers must prove entitlement to tax credits.  During the course of an audit, you may be required to provide documentation to substantiate entitlement based on the specific facts of your tax credit claim.  See Brownfield redevelopment tax credit recordkeeping requirements for more information on the recordkeeping requirements for this credit.

To learn about other New York State tax credits available to businesses, see Business incentives.


 Acceptance prior to 6/23/08

The qualified site must be accepted into the Brownfield Cleanup Program prior to June 23, 2008, to qualify for this credit.

You are entitled to this refundable credit if you or your business:

  • received a notice of acceptance into the Brownfield Cleanup Program issued by the Department of Environmental Conservation prior to June 23, 2008, and:
    • executed a Brownfield Cleanup Agreement (BCA) under the Environmental Conservation Law (ECL), and
    • has a Certificate of Completion (COC) issued by the Commissioner of Environmental Conservation; or
  • received the COC pursuant to the transfer or sale of a qualified site.

How much is the credit?

  • The credit amount is the sum of the site preparation, tangible property, and on-site groundwater remediation credit components.

Note: If a COC is not issued for the qualified site by December 31, 2017, you must use the rules and rates for sites accepted into the BCP on or after July 1, 2015, when claiming this credit.

For additional information on claiming this credit, see:

 


 Acceptance on or after 6/23/08, but prior to 7/1/15

The qualified site must be accepted into the Brownfield Cleanup Program on or after June 23, 2008, and prior to July 1, 2015, to qualify for this credit.

You are entitled to this refundable credit if you or your business:

  • received a notice of acceptance into the Brownfield Cleanup Program issued by the Department of Environmental Conservation on or after June 23, 2008, and prior to July 1, 2015, and:
    • executed a Brownfield Cleanup Agreement (BCA) under the Environmental Conservation Law (ECL), and
    • has a Certificate of Completion (COC) issued by the Commissioner of Environmental Conservation; or
  • received the COC pursuant to the transfer or sale of a qualified site.

How much is the credit?

  • The credit amount is the sum of the site preparation, tangible property, and on-site groundwater remediation credit components.
  • The tangible property credit component is subject to limitation.
    • The component for a qualified site is limited to the lesser of $35 million or three times the costs included in the calculation of the site preparation and on-site groundwater remediation components. 
    • The component for a qualified site used primarily for manufacturing activities is limited to the lesser of $45 million or six times the costs included in the calculation of the site preparation and on-site groundwater remediation components.

Note: If a COC is not issued for the qualified site by December 31, 2019, you must use the rules and rates for sites accepted into the BCP on or after July 1, 2015, when claiming this credit.

For additional information on claiming this credit, see:

 


 Acceptance on or after 7/1/15

The qualified site must be accepted into the Brownfield Cleanup Program on or after July 1, 2015, to qualify for this credit.

You are entitled to this refundable credit if you or your business:

  • received a notice of acceptance into the Brownfield Cleanup Program issued by the Department of Environmental Conservation on or after July 1, 2015, and prior to January 1, 2023, and:
    • executed a Brownfield Cleanup Agreement (BCA) under the Environmental Conservation Law (ECL), and
    • has a Certificate of Completion (COC) issued by the Commissioner of Environmental Conservation; or
  • received the COC pursuant to the transfer or sale of a qualified site.

Note: A COC must be issued for the qualified site by March 31, 2026, to claim this credit.

How much is the credit?

  • The credit amount is the sum of the site preparation, tangible property, and on-site groundwater remediation credit components.
  • The tangible property credit component is subject to limitation.
    • The component for a qualified site is limited to the lesser of $35 million or three times the costs included in the calculation of the site preparation and on-site groundwater remediation components. 
    • The component for a qualified site used primarily for manufacturing activities is limited to the lesser of $45 million or six times the costs included in the calculation of the site preparation and on-site groundwater remediation components. 
    • The component for a qualified site used primarily for the activities of Qualified Emerging Technology Companies (QETCs) is limited to the lesser of $35 million or three times the costs of the site preparation and on-site groundwater remediation components, unless those companies qualify as manufacturers.
    • When calculating the limitation, you may include costs expensed at the federal level under Internal Revenue Code (IRC) section 198 that are not part of the site preparation and on-site groundwater remediation component bases.

For additional information on claiming this credit, see:

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