July 23, 2008
GOVERNOR PATERSON SIGNS BROWNFIELDS REFORM LEGISLATION IN BUFFALO
Sustainable Cleanup Program Will Help Revitalize Cities and Towns While Protecting Public Health and the Environment
Long Overdue Changes Are a Victory for the Paterson Administration and the State
Governor David A. Paterson today signed landmark legislation that reforms the State’s Brownfield Cleanup Program to better target incentives for cleanup and redevelopment of contaminated sites. This important legislation, which will greatly benefit the Upstate economy, was one of 26 agreements reached between Governor Paterson and the State Legislature during this year’s session, and brings long-overdue reforms to this important program.
“The purpose of the Brownfields law was to clean up the environment, not clean out the state treasury. Now this reformed program will serve as an important tool for revitalizing cities and towns across New York State,” said Governor Paterson. “We will now be able to break down barriers to economic development in struggling neighborhoods across New York. Our goal should be for every former industrial site in New York State to be returned to safe and productive use.”
The Brownfield Cleanup Program was created in 2003 to encourage cleanup and redevelopment of brownfield sites across the State, using refundable tax credits as incentives for developers. A brownfield is a contaminated property where the presence of pollution has impeded redevelopment. Many such sites are abandoned throughout the state and contribute to urban blight. However, the original program did not achieve desired redevelopment in struggling areas, and provided large windfalls for some developers because tax credits were based on the amount invested by a developer on redevelopment, and has no relation to the investment made in remediation.
The reform legislation will protect the integrity of the program by capping redevelopment credits while providing better incentives for cleanup. The legislation signed today will:
- Limit redevelopment credits for non-manufacturing projects to $35 million or three times the cost of site cleanup, whichever is less.
- Limit redevelopment credits for manufacturing projects to $45 million or six times the cost of site remediation, whichever is less.
- Increase the tax credits available for site cleanup; sites now eligible for 22 to 50 percent of the total cost of remediation, based on the level of cleanup.
- Improve administration of the Brownfield Opportunity Area Program.
Project applications approved prior to June 23, 2008 will continue to be eligible for tax credits pursuant to prior law.
