The New York State Budget that was completed last week also included a 10-year extension of the state’s Brownfield Cleanup Program. This program, which was set to expire at the end of the year, provides New York State tax credits for developers who clean up and build on contaminated sites.
The program, which began 2003 under Governor George Pataki, was designed to encourage clean up and redevelopment of polluted old industrial properties that are often heavily contaminated, and the substantial cleanup and construction costs sometimes outweighs the anticipated value of the projects.
Governor Cuomo’s budget included increases on permit fees from $100 to $125 per acre disturbed plus from $600 to $700 per future impervious acre. Through negotiations the fees dropped to $110 and $675.
The Senate though was successful in eliminating the provision which would have increased these fees on an annual basis pursuant to the CPI.
NYSBA and other business groups argued that this is the latest example of New York State trying to fill the piggy bank with money off of your work. We have always argued that there is no connection between this fee and the administration of the State Pollutant Discharge Elimination System program. It is just a money making opportunity for the state government. As a consequence, these increases represent a tax on the building and construction industry in New York State. This tax is a job killer.
NYSBA is not giving up the fight on this issue, and it will be discussed further at our Legal Defense Fund and Spring Board Meetings on April 28th in Albany.