California law allows an owner of a qualified contaminated property to transfer the base year value of that property to a comparable replacement property of equal or lesser value that is acquired or newly constructed after January 1, 1995.
In addition, a replacement property must meet all of the following requirements:
- It must have been acquired or newly constructed within five (5) years after the date of the sale or transfer; and
- It must be used in the same manner as the qualified contaminated property; and
- A claim for relief must be filed within three (3) years after the replacement property is acquired or newly constructed.