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The Business Council supports this legislation that would promote the rehabilitation and reuse of existing, underutilized structures by providing a tax credit for the removal of asbestos from residential or commercial buildings at least 25 years old.
This bill would create a 20 percent refundable credit, applicable to capital expenses for asbestos removal, when done consistent with New York State statutory and regulatory requirements. The credit, allowable under the state's corporation, corporate franchise and personal income taxes, is applicable to allowable expenses over a three year period, and has a per taxpayer limit of $1 million over the three year eligibility period.
New York State's brownfield cleanup and redevelopment program has proven to be an effective, and cost-effective, incentive for the cleanup and redevelopment of sites whose reuse was hindered by the on-site presence of hazardous substances. Unfortunately, many unused properties have significant asbestos issues, whose removal is not addressed by the state's brownfield program or brownfield redevelopment tax credits.
New York has a longstanding regulatory program that assures the same removal and disposal of asbestos, but it results in expensive removal projects. This legislation fills a significant gap in the state's program for promoting site reuse and urban redevelopment, by providing an asbestos abatement tax credit comparable to that for remediation of hazardous substance sites.
For these reasons, The Business Council supports approval of S.1671-A (Grisanti) / A.5365 (Schimminger).