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S 10519

Relates to the tangible property credit component of the brownfield redevelopment tax credit

2025 Regular Session Introduced by Kristen Gonzalez

The bill broadens and clarifies the tangible property credit for brownfield redevelopments, expanding eligible buildings to include athletic facilities and allowing related-party s

PRINT NUMBER 10519A
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Bill Summary · S 10519

Overview

Bill S 10519-A (2025-2026, New York) amends the tax law to modify the tangible property credit component of the brownfield redevelopment tax credit. Introduced by Sen. Gonzalez and referred to Investigations and Government Operations, with a subsequent amendment and recommitment.

  • Purpose: Clarify and expand how the tangible property credit is computed and extend certain credit-availability provisions for qualified brownfield projects, including stadiums and athletic facilities on compliant sites, as well as specific extension and eligibility rules tied to completion certificates and special environmental circumstances.

Main purpose and intent

  • To adjust the calculation and eligibility of the tangible property credit component within the brownfield redevelopment tax credit program.
  • To explicitly treat certain athletic facilities on eligible remediation sites as buildings for purposes of the tangible property credit.
  • To regulate the treatment of related party service fees in the tangible property credit (limited to the tangible property credit calculation, not to other components).
  • To provide extended or special-duration credit availability under defined conditions and geographic or project-specific criteria.

Key provisions and changes

  • Tangible property credit base: The credit equals an applicable percentage of the cost or basis for federal income tax purposes of tangible personal property, buildings, and structural components that are qualified tangible property. The calculation excludes costs for items previously credited to another taxpayer and includes related party service fees only in the tangible property credit calculation.
  • Stadiums and athletic facilities: Starting with tax year 2022, sites complying with Track One remediation standards where stadiums, baseball parks, basketball courts, and similar facilities are located shall be treated as buildings. Their components (e.g., sports turf, lighting, sidewalks, access/entryways) are considered structural components and included in tangible property for the credit.
  • Related party service fees: The portion of the tangible property credit attributable to related party service fees may be claimed only:
    • In the taxable year the qualifying tangible property is placed in service and for portions earned and actually paid to the related party on or before the tax year end; and
    • In any later year when additional related party service fees are paid, the credit for that amount may be claimed in that year.
  • Timing and placement in service: The credit is available in the taxable year the qualified tangible property is placed in service on a qualified site with a certificate of completion, or in the year the certificate is issued if placed in service before the certificate.
  • Duration of the credit: Generally up to 120 months after the certificate of completion, with several extended periods under specific circumstances:
    • Up to 144 months for certain sites (certificates issued 3/20/2010 to 12/31/2011) if the commissioner determines extensions would have met requirements but for COVID-19-related restrictions.
    • Up to 180 months for certificates issued 3/20/2010 to 12/31/2015 on eligible sites (additional conditions apply).
  • Geographic and project-based extensions:
    • For qualified sites in counties with populations between 2,200,000 and 2,500,000 (per latest decennial census), where completion certificates were issued 1/1/2017 to 12/31/2017 but development was delayed by environmental hazards from an adjacent NY Power Authority peaker plant, the credit can extend up to 180 months, contingent on the site including at least 40% publicly accessible open space and at least 25% affordable housing, in compliance with RPTL 485-x.
    • For qualified sites in cities with populations between 205,000 and 215,000 in counties with populations over 1,000,000 but under 1,010,000, where completion certificates were issued 2017, the credit may extend up to 180 months (subject to issuance timing and other terms).

Affected parties and scope

  • Eligible taxpayers who incur costs for tangible property on brownfield redevelopment projects, including:
    • Owners or developers of brownfield sites seeking the tangible property portion of the tax credit.
    • Projects involving stadiums or athletic facilities located on compliant remediated sites.
    • Projects with related party service arrangements that would influence the tangible property credit calculation.
  • Government entities (as administering agencies) via the structure of the brownfield tax credit program (e.g., environmental consistency standards, certificate of completion issuance, and extensions through the commissioner and environmental conservation agencies).

Procedural and timeline aspects

  • Effective date: Immediate upon enactment.
  • Implementation: Aligns with existing Track One remediation standards and the environmental conservation law for certificate eligibility.
  • Certificates of completion drive the timing of when the tangible property credit can be claimed (and the duration of the credit).
  • Extensions depend on specific statutory and administrative determinations (commissioner in consultation with the environmental conservation commissioner).

Summary in plain terms

This bill broadens and clarifies how the tangible property portion of New York’s brownfield redevelopment tax credit is calculated and claimed. It expands what qualifies as buildings (to include athletic facilities on certain remediated sites) and allows related-party service fees to be factored into the tangible property credit under defined conditions. It also creates targeted, conditional credit-duration extensions tied to particular site characteristics, completion dates, and geographic or project-specific circumstances, with an emphasis on ensuring affordable housing and public open space in eligible extensions.

Compiled from official sources — confirm details with the bill’s official record.

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