Brownfield redevelopment tax credit rate structure
For the site preparation, on-site groundwater remediation, and tangible property credit components.
The tax credit for each component is computed by multiplying the qualified eligible costs by the applicable rate given below in percentages.
These percentages are based on the acceptance date of qualified sites in the Brownfield Cleanup Program (BCP).
| Rate structure | Sites accepted into BCP prior to 6/23/081 |
Sites accepted on or after 6/23/08 but before 7/1/152 |
Sites accepted into BCP on or after 7/1/15 but before 1/1/233 |
Sites accepted into BCP on or after 1/1/233 |
|---|---|---|---|---|
| Tangible property component 4 | ||||
| Base rate | 10%/12%5 | 10%/12%5 | 10% | 10% |
| Track 1 remediation11 | +2% | +2% | +5% | +5% |
| 50%+ of site in Environmental Zone (En-Zone)6 | +8% | +8% | +5% | +5% |
| Brownfield Opportunity Area (BOA)7,8 | +2% | +5% | +5% | |
| Affordable housing9 | +5% | +5% | ||
| Manufacturing | +5% | +5% | ||
| Sites located in disadvantaged communities10 | +5% | |||
| Renewable energy facility sites10 | +5% | |||
| Site preparation/groundwater remediation components | ||||
| Unrestricted use | The rates above apply to all 3 components; there are no separate rates for these categories |
50% | 50% | 50% |
| Residential use | 40% | 40% | 40% | |
| Commercial use | 33% | 33% | 33% | |
| Industrial use | 27% | 27% | 27% | |
| Residential – track 4 | 28% | 28% | 28% | |
| Commercial – track 4 | 25% | 25% | 25% | |
| Industrial – track 4 | 22% | 22% | 22% | |
1Any site for which a Brownfield Cleanup Agreement (BCA) with the Department of Environmental Conservation (DEC) was entered into prior to June 23, 2008, and which has not received a Certificate of Completion (COC) by December 31, 2017, will only be eligible for brownfield redevelopment tax credits as if the site was accepted into the BCP on or after July 1, 2015.
2Any site accepted into the BCP on or after June 23, 2008, and prior to July 1, 2015, and which has not received a COC by December 31, 2019, will only be eligible for brownfield redevelopment tax credits as if the site was accepted into the BCP on or after July 1, 2015.
3Maximum tangible property component rate capped at 24%.
4The tangible property component for sites accepted on/after 6/23/08 is capped at the lesser of:
- $35 million or 3x site prep/groundwater costs; or
- $45 million or 6x site prep/groundwater costs if the site is primarily used in manufacturing.
510% is the personal income tax rate; 12% is the corporate rate.
6En-Zones are areas designated by the New York Department of Labor that meet certain poverty and unemployment standards.
7BOAs (Brownfield Opportunity Areas) are determined by the New York Department of State.
8The BOA project category for sites accepted into the BCP on or after January 1, 2023, has been amended to include sites located in a city having a population of one million or more that have submitted sufficient information to demonstrate their eligibility. These sites must meet the conformance determinations pursuant to General Municipal Law §970-r(10). These determinations are guided by, but not limited to, the following considerations:
- how the proposed use and development advances the designated brownfield opportunity area plan's vision statement, goals and objectives for revitalization;
- how the density of development and associated buildings and structures advances the plan's objectives, desired redevelopment and priorities for investment; and
- how the project complies with zoning and other local laws and standards to guide and ensure appropriate use of the project site.
9The DEC’s definition of affordable housing for sites accepted into the BCP on or after January 1, 2023, was amended to include a brownfield site that demonstrates it will qualify for benefits or be eligible under an affordable housing program. A project must provide a certificate of compliance or other evidence of eligibility issued by a federal, state, or local government affordable housing agency to qualify for the 5% affordable housing rate bonus.
10For sites located in a city having a population of one million or more, the redevelopment use limits for tangible property credit eligibility have been expanded to include these additional project categories (ECL 27-1407(1-a)). The redevelopment use limits include:
- at least half of the site area is located in an environmental zone as defined in section 21 of the Tax Law
- the property is upside down or underutilized
- the project is an affordable housing project
- the project is within a disadvantaged community, within a brownfield opportunity area, and meets the conformance determinations pursuant to subdivision 10 of section 970-r of the general municipal law; or
- the project is being developed as a renewable energy facility site.
11Starting in taxable year 2022, for sites complying with track one remediation standards, athletic facilities and their components will be considered buildings and structural components under the Internal Revenue Code for purposes of this credit. Athletic facilities include stadiums, baseball parks, basketball courts, and other athletic facilities. Their components include sports turf, site lighting, sidewalks, access and entry ways, and other improvements added to land.
