Last Monday, State Comptroller Tom DiNapoli released a report on the state’s Brownfield Cleanup Program (BCP). The report includes recommendations for reducing the program’s cost while increasing the program’s effectiveness.
Established in 2003, the BCP offers property owners limited liability protection, an abbreviated process to identify a cleanup remedy and refundable tax credits of 10 to 22% of site cleanup and redevelopment costs. In 2008, the program was modified to tie the credits more closely to cleanup costs.
The program has led to 128 sites being cleaned up, at an average tax credit cost to the state of $9.4 million per site, according to the report. The Comptroller projects a potential outstanding tax credit liability to the state of $3.3 billion for the 389 sites currently enrolled in the program.
Comptroller DiNapoli said:
“While two decades of efforts to clean up brownfields have delivered some successes, much more can and should be done…The state has an opportunity now to improve the cleanup program to encourage more remediation and redevelopment of contaminated properties, and do so in a more cost-effective manner through better targeting of program dollars.”
Read the Comptroller’s report here.