The New York State Tax Appeals Tribunal has upheld the decision of an Administrative Law Judge denying the site preparation credit component of a brownfield redevelopment tax credit because it found that the costs were not “chargeable to a capital account” as required by the statute. Matter of Coltec Industries, Inc., DTA No. 825211 (N.Y.S. Tax App. Trib., Mar. 18, 2016). Coltec had claimed a brownfield redevelopment tax credit for remedial costs under Tax Law §§ 21(a) and (b), which defines creditable costs as “all amounts properly chargeable to a capital account . . . paid or incurred” in connection with a site’s “qualification for a certificate of completion . . . .” Tax Law § 21(b)(2). The Tribunal held that the phrase “properly chargeable to a capital account” required that the costs must have been actually charged to such an account, and not merely capable of being so charged, so that once Coltec made an election under IRC § 198 to expense the costs, they were no longer “properly chargeable to a capital account” and became ineligible for the site preparation credit.