The BCPA now includes a substantial tangible property tax creditfor sites that have received a brownfield cleanup programcertificate of completion of remediation from the New York StateDepartment of Environmental Conservation. The tangible property taxcredit is 12% (or 10% for an individual taxpayer) of the taxpayer'sfederal tax basis in qualified tangible property. This includesdepreciable tangible personal property or real property, includingbuildings and structural components of buildings, that has a usefullife of four or more years, was purchased by the taxpayer, isplaced in service within three years of the issuance of the COC andis principally used by the taxpayer for industrial or commercialpurposes (including commercial development of residentialhousing).

The tax credit may be increased two percentage points if thetaxpayer remediates the site up to the DEC's highest remediationstandards, and may be increased by an additional eight points if atleast 50% of the site is located in an area designated by New YorkState as an "Environmental Zone," with high poverty andunemployment rates. This credit can be claimed for up to 10 taxableyears after the date the COC is issued and may be claimed by a sitelessee to which a COC has been transferred, as long as the lesseeis not responsible for the contamination at the site.

A remediation tax credit is also available under the currentBCPA. The remediation tax credit is 12% (or 10% in the case of anindividual taxpayer) of the combined (soil and groundwater)remediation costs. Like the tangible property tax credit, it can beincreased up to an additional 10% depending on the level of cleanupand the location of the site. Under the current BCPA, largetangible property tax credits have been awarded to developers thatmay have invested relatively little in the remediation of a site.In order to control costs associated with the tangible property taxcredits, the interim and permanent amendments would cap thetangible property tax credit at $10 million and $15 million,respectively. In both cases, taxpayers accepted into the brownfieldcleanup program on or after July 1, 2007, or who have a COCtransferred to them on or after that date, would be subject to thecap.