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Regional Review: A Closer Look at New York’s $7 Billion Subsidy System

New York spends approximately $7 billion each year on subsidies to businesses across New York. Fifteen economic development programs, some with hundreds of local entities, issue subsidies such as tax exemptions, tax credits, grants, tax-exempt bonds, and discounted land to corporations, ostensibly in the name of job creation, economic growth and an improved quality of life for all New Yorkers. This report takes a closer look at the subsidy programs that report regional data, their job creation performance, and the most expensive projects funded in each program.

Key Facts about IDAs

New York State’s 113 Industrial Development Agencies (IDAs) provide aid to businesses to locate or expand in
the state. In exchange for tax exemptions and tax-exempt bond financing, companies often agree to create
or retain a certain number of jobs. Too often, however, these businesses fail to meet their commitments, or
create low-wage work that doesn’t promote real economic growth. Performance standards, accountability
measures, and transparency reforms are needed to ensure that IDAs do not waste public dollars.

The $7 billion wager: New York State’s Costly Gamble in Economic Development

New York spends approximately $7 billion annually on economic development. Dozens of different economic development programs issue subsidies such as tax exemptions, tax credits, grants, tax-exempt bonds, and discounted land to corporations, ostensibly in the name of job creation, economic growth and an improved quality of life for all New Yorkers. At such a high price tag, New Yorkers deserve to know: how is this money being spent, and what return are taxpayers getting from this investment? Are these programs actually creating good jobs and community benefits? Our new report surveys and rates the larges economic development programs.