DiNapoli Releases IDA Performance Report

State Comptroller Thomas DiNapoli's sixth annual report examining the performance of the state's IDAs found improved reporting of data but recommended that IDAs do more to objectively weigh incentives against economic benefits to communities and evaluate projects receiving tax and other breaks.

The report showed that New York’s Industrial Development Agencies supported nearly 4,500 projects and provided $560 million in net tax exemptions in 2011, increasing estimated job gains by almost 36,000 from the previous year.

DiNapoli’s report found the state’s 113 active IDAs provided $1.5 billion in total tax exemptions in 2011. Local property taxes accounted for $680 million of total IDA tax exemptions while school property tax breaks accounted for $439 million. The report noted IDAs supported more retail projects despite evidence that these types of endeavors generally do not increase economic activity or increase the number of available jobs in a region.

IDAs were restricted from supporting retail projects until the provision sunset in 2008. Since then, the number of retail projects increased 191 percent, from 36 projects to 105 projects in 2011, with a total project value of $1.2 billion. The 2013-14 Enacted Budget reinstates the prior restrictions.