The alleged "home grown" terrorist accused of building a pipe bomb to attack police and government targets pleaded not guilty Tuesday to state-level terror charges.

Jose Pimentel, 27, was arraigned in Manhattan and is now being held without bail.

He was indicted by a grand jury last month on charges including conspiracy as terror crimes and weapons possession.

The terror charges stem from a state law passed following the September 11th attacks.

According to the indictment, Pimentel researched bomb-making and began to assemble a device inside his Manhattan apartment before being arrested on November 19.

Pimentel's attorneys say police overreached with their indictment, but the New York City Police Department defends its surveillance of Pimentel prior to his arrest.

He is due back in court on April 17.