Today, Governor Kathy Hochul announced $100 million in new Excelsior Jobs Program tax credits to Regeneron Pharmaceuticals. The company, headquartered in Westchester County with facilities in Rensselaer County, has received more than $508 million in state and local subsidies and tax breaks since 2006 according to data compiled by watchdog group Reinvent Albany.
Regeneron says it employs about 4,000 people in New York State, and has promised another 1,000 jobs. Assuming 5,000 jobs, this means New York State and local governments have provided Regeneron with more than $100k per employee since 2006.
What do NY taxpayers get from Regeneron “investment?”
Zero equity
Zero return on capital
Meanwhile, NY taxpayers get a 10% IRR from state pension fund investments in portfolios of NYS companies.
The state Comptroller’s recently-announced state pension fund investment in New York Companies returned over $1.5 billion on $848 million invested in 251 transactions with a 10% internal rate of return.
Why is New York State giving huge handouts to highly profitable corporations instead of seeking a clear financial or public ROI by investing public dollars in education, workforce development, and public infrastructure, all of which have a greater rate of return than handouts to corporations?
Highly Profitable Regeneron Has Gotten $508M in NY Subsidies Since 2006—Why?
Regeneron Has Gotten $508 Million in New York Taxpayer Subsidies Since 2006—Why?
Highly profitable company reported $974m profit in IQ of 2022 helped by New York government handouts worth about $100k per job.