[CPEO-BIF] Watchdog applauds New York law

[Lenny Siegel <lennysiegel@gmail.com>]

News from Environmental Advocates of New York
June 25, 2008

Environmental Watchdog Applauds Fiscal Fix For Brownfield Cleanup Tax 
Credits

NYS Governor & Legislature Reform Brownfield Cleanup Program to Stop 
Budget Hemorrhaging

ALBANY, NY (06/25/2008; 1004)(readMedia)-- Environmental Advocates of 
New York applauded the announcement by Governor David Paterson and 
legislative leaders to reform New York's troubled Brownfield Cleanup 
Program. The legislation, which was passed by both houses yesterday, 
will increase tax incentives for site cleanup to up to half of cleanup 
costs and limit tax credits for site redevelopment. The law also 
provides a series of incentives to developers to clean-up sites to 
higher standards, as well as additional tax incentives for 
redevelopments that are consistent with the Brownfield Opportunity Area 
program.

"Thanks to the leadership of Governor Paterson and the New York State 
Legislature, the Brownfield Cleanup Program's tax credits will act as an 
incentive for the cleanup of all polluted sites and not break the bank," 
said Robert Moore, Executive Director, Environmental Advocates of New 
York. "New York's Brownfield Cleanup Program will now better serve those 
communities most in need of the economic shot in the arm provided by 
redevelopment, as intended."

Hailed as a landmark initiative by environmental groups when it was 
introduced in 2003, the Brownfield Cleanup Program has been the subject 
of criticism regarding the overly generous tax credits doled out to 
developers in communities that do not need an added incentive to attract 
development. And according to a recent report released by the State 
Comptroller's Office, if the state does not fix the program, New York 
will need to pay out more than $3 billion for the cleanup of the 200 
sites in the program.

The new law limits redevelopment tax credits for non-manufacturing 
projects to $35 million or three times the cost of site cleanup, 
whichever is less; tax credits for manufacturing projects will be capped 
at $45 million, or six times the cost of site cleanup, whichever is less.

The Brownfield Opportunity Areas (BOA) program is one of the most 
innovative components of the 2003 law and was designed to incentivize 
redevelopment in urban and lower-income communities. The law passed 
yesterday will provide an additional two percent tax incentive for 
projects redeveloped consistent with a BOA plan. The law also requires 
detailed reporting on the amount of tax credits claimed by developers, 
which should serve to better inform the public about the program's 
fiscal implications.

However, the new law fails to amend the definition of a brownfield site 
to clarify that historic fill sites would be eligible for the program. 
Sites contaminated by off-site sources or containing historic fill have 
been improperly excluded from the program. The reforms should stimulate 
cleanup and redevelopment of polluted sites across the state without 
providing windfalls for developers in certain communities.

-30-

Environmental Advocates of New York is the state's government watchdog, 
holding lawmakers and agencies accountable for implementing policy that 
protects natural resources and safeguards public health. Environmental 
Advocates works alone and in coalitions, and has more than 7,000 
individual and 130 organizational members. The 501(c)(3) is also the New 
York affiliate of the National Wildlife Federation. For more information 
call 518.462.5526 or visit www.eany.org.



For the original press release, go to
http://readme.readmedia.com/news/show/Environmental-Watchdog-Applauds-Fiscal-Fix-For-Brownfield-Cleanup-Tax-Credits/202383

--


Lenny Siegel
Executive Director, Center for Public Environmental Oversight
a project of the Pacific Studies Center
278-A Hope St., Mountain View, CA 94041
Voice: 650/961-8918 or 650/969-1545
Fax: 650/961-8918
<lsiegel@cpeo.org>
http://www.cpeo.org



_______________________________________________
Brownfields mailing list
Brownfields@lists.cpeo.org
http://lists.cpeo.org/listinfo.cgi/brownfields-cpeo.org