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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. 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:

For more information about the Brownfield Cleanup Program and how to apply, visit DEC: Brownfield Cleanup Program.

What are the 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.

Who is eligible? 

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 under the Environmental Conservation Law, and
    • has a Certificate of Completion issued by the Commissioner of Environmental Conservation; or
  • received the Certificate of Completion 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 Certificate of Completion is not issued for the qualified site by December 31, 2017, you must use the rules and rates for sites accepted into the Brownfield Cleanup Program on or after July 1, 2015, when claiming this credit.

Additional information

 

 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.

Who is eligible? 

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 under the Environmental Conservation Law, and
    • has a Certificate of Completion issued by the Commissioner of Environmental Conservation; or
  • received the Certificate of Completion 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 the limitation of:

  • the lesser of $35 million or three times the costs included in the calculation of the site preparation and on-site groundwater remediation components, or
  • the lesser of $45 million or six times the costs included in the calculation of the site preparation and on-site groundwater remediation components if the site is used primarily for manufacturing activities.

Note: If a Certificate of Completion is not issued for the qualified site by December 31, 2019, you must use the rules and rates for sites accepted into the Brownfield Cleanup Program on or after July 1, 2015, when claiming this credit. Exception: Any site accepted into the Brownfield Cleanup Program on or after June 23, 2008, and prior to July 1, 2015, that has a Brownfield Cleanup Agreement that was signed by DEC on or after July 1, 2015, is not subject to the December 31, 2019, Certificate of Completion date. These sites continue to use the rules and rates for sites accepted into the Brownfield Cleanup Program on or after June 23, 2008 and prior to July 1, 2015. See DEC Program Update.

Additional information

 

 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.

Who is eligible? 

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, 2033, and:
    • executed a Brownfield Cleanup Agreement under the Environmental Conservation Law, and
    • has a Certificate of Completion issued by the Commissioner of Environmental Conservation; or
  • received the Certificate of Completion pursuant to the transfer or sale of a qualified site.

Note: A Certificate of Completion must be issued for the qualified site on or before December 31, 2036, 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 the limitation of:

  • the lesser of $35 million or three times the costs included in the calculation of the site preparation and on-site groundwater remediation components, or
  • the lesser of $45 million or six times the costs included in the calculation of the site preparation and on-site groundwater remediation components if the site is used primarily for manufacturing activities.

Note: When calculating the limitation, you may include costs expensed at the federal level under Internal Revenue Code section 198 that are not part of the site preparation and on-site groundwater remediation component bases.

Additional information

Updated: