Tax incentives created fewer jobs between 2011 and 2012
Legislative Gazette
Projects receiving tax exemptions created fewer jobs in 2012 than the previous year, a report by the Comptroller's Office found. According to a study conducted by Comptroller Thomas DiNapoli, Industrial Development Agencies, which have the authority to provide tax exemptions to certain businesses and projects, yielded 2,400 fewer jobs than in 2011.
IDAs are one of the state's widely used economic development initiatives and seek to create and maintain jobs by providing tax breaks to businesses for locating to, or remaining in, New York. According to the Comptroller's Office, in 2012 the state's 112 active IDAs provided $1.3 billion in tax exemptions. However, this was partly offset by $766 million in payments-in-lieu of taxes meaning roughly $554 million in incentives was provided. This represents a 9.3 percent increase from 2011, yet fewer jobs were created as a result of the investments.
"In many parts of New York, IDA projects provide a much-needed boost to local economic development efforts," DiNapoli said. "However, I continue to stress the need for more accountability and disclosure to ensure taxpayers are getting their money's worth. Accurate reporting is vital for determining whether job creation goals are reaching their benchmarks and this report shows improvements need to be made."
http://www.legislativegazette.com/Articles-Top-Stories-c-2014-05-19-87973.113122-Tax-incentives-created-fewer-jobs-between-2011-and-2012.html