A "Brownfield" is any real property where redevelopment or reuse is complicated by the presence or potential presence of a hazardous waste, petroleum, pollutant, or contaminant.
The Pirro Group has specialized in environmental procedure and processes under the New York State Environmental Conservation Law (ECL) since 1975. With the advent of article 8 ECL and the State Environmental Quality Review Act (SEQRA), the implementing regulations for article 8 ECL, Pirro Group has been a key consulting partner to a multitude of successful real estate projects from minor subdivisions to large scale solid waste Recycling Facilities.
In 2003, Governor George Pataki established the NYS Brownfield Cleanup Program (BCP). Administered by both NYS DEC and NYS Department of State, this program continues to foster environmental cleanup initiatives and to spur economic redevelopment by providing developers with a myriad of tax credits for the development or adaptive reuse of contaminated sites.
Three tax credits are available to taxpayers, subject to applicable tax law, who remediate a site under the Brownfield Cleanup Program under Title 14 of Article 27 of the Environmental Conservation Law. To be eligible for these tax credits, a taxpayer must have been issued a Certificate of Completion from the NYS Commissioner of Environmental Conservation. The services provided by the Pirro Group, detailed in the following section, are designed to provide this certificate in a timeframe that will meet the needs of their clients.
The first and most significant tax credit is The Brownfield Redevelopment Credit. A credit of 10% to 22% of the costs incurred in the following three areas:
For many Pirro Group clients, this tax credit represents millions of dollars in immediate return on investment. However, only costs incurred on or after the date of execution of the NYS Brownfield Cleanup Agreement are eligible for purposes of computation of the credit. Please contact a Pirro Group consultant for more information on this issue.
The second tax credit, the Remediated Brownfield credit for Real Property Taxes, is a yearly credit. This credit is for developers bringing employment to the developed site. Based on number of employees as well as location of the site, the tax credit can be up to 100% of the eligible yearly real property taxes paid with a limitation equal to the number of employees time $10,000. For instance, if the developed site pays $50,000 in real property taxes and employs 100 employees, the tax credit could be up to $50,000 per year. Further, improving the developers return on investment.
The third tax credit is the Environmental Remediation Insurance Credit. This is for premiums paid fro Environmental Remediation Insurance ( section 3447 of the Insurance Law) up to $30,000 or 50% of the premium.
As mentioned earlier, there are limitations and a defined process to be followed to successfully earn these tax credits. The services provided by the Pirro Group will guide the developer successfully through this process.
The Pirro Group has the ability to conduct site assessments, prepare investigative reports, prepare remedial work plans, and advise developers on the benefits, requirements and procedures for completion of most hazardous waste projects.
Under the Brownfield Cleanup Program, the Pirro Group, LLC will coordinate either with our staff attorneys, or the clients counsel, a turn-key coordination of the BCP program including:
Upon issuance of the Certificate of Completion, the site owner receives liability limitations for hazardous waste and/or petroleum emanating from the site under Environmental Conservation Law Section 27-1421; and the taxpayer is eligible for tax credits (note that where the NYSDEC refers to a Certificate of Completion, the Tax Law refers to this document as a Remediation Certificate).
The applicability of the BCP to your project should be checked with and supervised by appropriate attorneys specializing in the respective areas.