Brownfield Cleanup Program
Brownfield Cleanup Program (BCP) was established in
Chapter 1 of the Laws of 2003 and amended in 2008. The
BCP provides benefits for the cleanup and redevelopment of
brownfield sites including liability relief and tax credits.
Tax credits are provided in four areas; cleanup,
redevelopment, real property taxes and for the purchase of
The law directed ESD to designate Environmental Zones (“En-Zones”) in which these tax credits are enhanced. Designation of En-Zones is limited to Eligible Census Tracts with a poverty rate of at least 20% according to the 2000 Census and an unemployment rate of at least 125% of the New York State average, or a poverty rate of at least double the rate for the county in which the tract is located.
To encourage cleanup and redevelopment of brownfields sites across New York State by providing incentives such as liability relief and tax credits.
Credit for Remediation of Brownfield Sites
Site Preparation and On-Site Remediation Credit
- Covers site preparation and on-site groundwater cleanup
- Includes remediation, demolition, excavation, fencing, security and other capital costs to make the site usable for redevelopment, excluding site acquisition costs
- Tax credits range from 22-50% of the total cost of remediation, based on the level of cleanup
Tangible Property Credit Component
- Covers costs of buildings and improvements, including structural components of buildings, that are placed into service within 10 years after a certificate of completion is issued for the site cleanup
- Credits range from 10-24% of eligible costs with the base credit being increased based on level of cleanup, location of site in and En-Zone, and, redevelopment of site in conformance with a Brownfield Opportunity Area plan
credits are capped as follows:
- Non-manufacturing projects capped at $35 million or three times the site preparation and on-site groundwater remediation costs, whichever is less.
- Manufacturing projects capped at $45 million or six times the site preparation and on-site groundwater remediation costs, whichever is less.
- Tax Credit for portion of real property taxes for a qualified remediated site
determined by a formula based on the number of employees on
the site up to $10,000 per employee
- For premiums paid for Environmental Remediation Insurance
- Capped at 50 % of the cost of the premium or $30,000, whichever is less
- Sites must be eligible for and accepted into the Brownfield Cleanup Program
must complete approved cleanup plan and obtain a Certificate
- Sites listed as a Class 1 or Class 2 in the New York State Registry of Inactive Hazardous Waste Disposal sites
- Sites listed on the National Priorities List
subject to certain state or federal enforcement actions
Empire State Development: (518) 292-5348
NYS Department of Tax & Finance: (518) 485-6027
NYS Department of Environmental Conservation: (518) 402-9764
Brownfield Cleanup Program Tax Credit Fact Sheet
Print out this program's Quick Sheet
Publication 300 Brownfield Tax Credits