S6942-2011 - NY Senate Open Legislation - Relates to brownfield site cleanup; repealer

Relates to brownfield site cleanup; relates to the repeal of certain brownfield redevelopment tax credits.

Sponsor: GRISANTI / Committee: RULES
Law Section: Tax Law / Law: Amd SS21, 22 & 23, Tax L; rpld part H S31, Chap 1 of 2003

S6942-2011 Actions

Jun 21, 2012: COMMITTED TO RULES
Jun 11, 2012: ADVANCED TO THIRD READING
Jun 6, 2012: 2ND REPORT CAL.
Jun 5, 2012: 1ST REPORT CAL.1068
May 22, 2012: REPORTED AND COMMITTED TO FINANCE
Apr 13, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S6942-2011 Meetings

Finance: Jun 6, 2012, Investigations and Government Operations: May 15, 2012, Investigations and Government Operations: May 22, 2012

S6942-2011 Calendars

Active List: Jun 14, 2012 , Floor Calendar: Jun 6, 2012 , Floor Calendar: Jun 11, 2012 , Floor Calendar: Jun 12, 2012 , Floor Calendar: Jun 13, 2012 , Floor Calendar: Jun 14, 2012 , Floor Calendar: Jun 18, 2012 , Floor Calendar: Jun 19, 2012 , Floor Calendar: Jun 20, 2012 , Floor Calendar: Jun 21, 2012

S6942-2011 Votes

VOTE: COMMITTEE VOTE: - Investigations and Government Operations - May 22, 2012

Ayes (6): Marcellino, Alesi, Golden, Nozzolio, Zeldin, Diaz
Ayes W/R (1): Peralta
Nays (1): Squadron

VOTE: COMMITTEE VOTE: - Finance - Jun 5, 2012

Ayes (19): DeFrancisco, Johnson, Alesi, Bonacic, Flanagan, Fuschillo, Golden, Lanza, Larkin, Little, Marcellino, Nozzolio, Robach, Saland, Seward, Young, Diaz, Dilan, Parker
Ayes W/R (7): Griffo, Hannon, LaValle, Breslin, Montgomery, Peralta, Stavisky
Nays (8): Krueger, Duane, Gianaris, Oppenheimer, Perkins, Rivera, Stewart-Cousins, Squadron
Excused (1): Farley

S6942-2011 Memo

BILL NUMBER:S6942

TITLE OF BILL:
An act
to amend
the
tax law, in relation to brownfield site cleanup;
and to repeal section 31 of part H
of chapter 1 of the laws of 2003 amending the tax law relating to
brownfield redevelopment tax credits, relating thereto

PURPOSE:
To eliminate the sunset of the brownfields program; to extend
time frames in relation to environmental zone designations; and to
increase the tax credits allowed for environmental remediation
insurance issued with respect to a qualified site.

SUMMARY OF SPECIFIC PROVISIONS:
Sections 1 and 2 amend the Tax Law in
relation to environmental zones. The definition of "environmental
zone" is amended to incorporate data from the most recent census.
Time frames with respect to environmental zone designations are
extended from two thousand ten to the year two thousand twelve.

Section 3 amends the Tax Law by increasing the tax credits allowed for
environmental remediation insurance issued with respect to a
qualified site from thirty thousand to ninety thousand dollars.

Section 4 repeals section 31 of part H of chapter 1 of the laws of
2003 amending the tax law relating to brownfield redevelopment tax
credits.

Section 5 provides the effective date.

JUSTIFICATION:
This bill would eliminate the March 31, 2015 sunset of
the brownfield cleanup program (BCP). Projects take on average 2.8
years to obtain a certificate of completion, which is required to
receive tax credits.
Removal of the sunset is necessary to keep the program going because
the sunset has effectively ceased inclusion of new projects under the
BCP.

Further, this bill extends the time frames associated with
environmental zone designations and allows for figures in the most
recent census to inform the designation process.

Last, the tax credits allowed for environmental remediation insurance
are increased from thirty thousand to ninety thousand dollars. This
comes in response to a fourfold increase in the cost of insurance
since 2004.

PRIOR LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:


Minimal.

EFFECTIVE DATE:
This act shall take effect immediately.

S6942-2011 Text

 S T A T E   O F   N E W   Y O R K
 
                                          6942
 I N  SENATE
 April 13, 2012
 
 Introduced  by Sen. GRISANTI -- read twice and ordered printed, and when
 printed to be committed to the Committee on Investigations and Govern
 ment Operations
 

AN ACT to amend the tax law, in relation to brownfield site cleanup; and
 to repeal section 31 of part H of chapter 1 of the laws of 2003 amend
 ing the tax law relating  to  brownfield  redevelopment  tax  credits,
 relating thereto
 

THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section 1.  Paragraph 6 of subdivision (b) of section 21  of  the  tax
 law,  as  amended  by  section 1 of part H of chapter 577 of the laws of
 2004, subparagraph (B) and the closing paragraph as amended by section 1
 of part G of chapter 62 of the laws of  2006,  is  amended  to  read  as
 follows:

 (6) Environmental zones (EN-Zones). An "environmental zone" shall mean
 an  area designated as such by the commissioner of economic development.
 Such areas so designated are areas which are  census  tracts  and  block
 numbering  areas  which,  as  of  the [two thousand] MOST RECENT census,
 satisfy either of the following criteria:

 (A) areas that have both:

 (i) a poverty rate of at least twenty percent for the  year  to  which
 the data relate; and
 (ii)  an  unemployment  rate of at least one and one-quarter times the
 statewide unemployment rate for the year to which the data relate, or;
 (B) areas that have a poverty rate of at least two times  the  poverty
 rate for the county in which the areas are located for the year to which
 the  data relate [provided, however, that a qualified site shall only be
 deemed to be located in an environmental zone  under  this  subparagraph
 (B)  if such site was the subject of a brownfield site cleanup agreement
 pursuant to section 27-1409 of the environmental conservation  law  that
 was entered into prior to September first, two thousand ten].
 Such  designation  shall  be made and a list of all such environmental
 zones shall be established by the commissioner of  economic  development
 no later than December thirty-first, two thousand [four provided, howev-
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD15361-01-2
        S. 6942                             2
 er, that a qualified site shall only be deemed to be located in an envi-
 ronmental zone under subparagraph (B) of this paragraph if such site was
 the  subject  of a brownfield site cleanup agreement pursuant to section
 27-1409  of  the  environmental  conservation  law that was entered into
 prior to September first, two thousand ten] TWELVE.
 

S 2. Paragraph 5 of subdivision (a) of section 22 of the tax  law,  as
 amended  by  section  4  of  part  H of chapter 577 of the laws of 2004,
 subparagraph (B) and the closing paragraph as amended by  section  2  of
 part G of chapter 62 of the laws of 2006, is amended to read as follows:

 (5) Environmental zones (EN-Zones). An "environmental zone" shall mean
 an  area designated as such by the commissioner of economic development.
 Such areas so designated are areas which are  census  tracts  and  block
 numbering  areas  which,  as  of  the [two thousand] MOST RECENT census,
 satisfy either of the following criteria:

 (A) areas that have both:

 (i) a poverty rate of at least twenty percent for the  year  to  which
 the data relate;
 (ii)  an  unemployment  rate of at least one and one-quarter times the
 statewide unemployment rate for the year to which the data relate, or;
 (B) areas that have a poverty rate of at least two times  the  poverty
 rate for the county in which the areas are located for the year to which
 the data relate[, provided, however, that a qualified site shall only be
 deemed  to  be  located in an environmental zone under this subparagraph
 (B) if such site was the subject of a brownfield site cleanup  agreement
 pursuant  to  section 27-1409 of the environmental conservation law that
 was entered into prior to September first, two thousand ten].
 Such designation shall be made and a list of  all  such  environmental
 zones  shall  be established by the commissioner of economic development
 no later than December thirty-first, two thousand [four provided, howev-
 er, that a qualified site shall only be deemed to be located in an envi-
 ronmental zone under subparagraph (B) of this paragraph if such site was
 the subject of a brownfield site cleanup agreement pursuant  to  section
 27-1409  of  the  environmental  conservation  law that was entered into
 prior to September first, two thousand ten] TWELVE.
 

S 3. Subdivision (a) of section 23 of  the  tax  law,  as  amended  by
 section  10  of part H of chapter 577 of the laws of 2004, is amended to
 read as follows:

 (a) Allowance of credit. General. A  taxpayer  subject  to  tax  under
 article  nine,  nine-A,  twenty-two,  thirty-two or thirty-three of this
 chapter shall be allowed a credit against  such  tax,  pursuant  to  the
 provisions  referenced in subdivision (e) of this section. The amount of
 such credit shall be equal to the lesser  of  [thirty]  NINETY  thousand
 dollars  or  fifty  percent of the premiums paid on or after the date of
 the brownfield site cleanup agreement executed by the taxpayer  and  the
 department  of environmental conservation pursuant to section 27-1409 of
 the environmental conservation law by  the  taxpayer  for  environmental
 remediation insurance issued with respect to a qualified site.
 

S  4. 

Section  31 of part H of chapter 1 of the laws of 2003 amending
 the tax  law  relating  to  brownfield  redevelopment  tax  credits,  is
 REPEALED.
 

S 5. This act shall take effect immediately.

S6942-2011: Relates to brownfield site cleanup; repealer