Subsidy Sheet: Is this the year NY finally ends OZ tax breaks?

NY corporate giveaway news from this week:

• A bill fully ending NY’s Opportunity Zone capital gains tax break is now on the NY Senate Floor Calendar (Bloomberg Tax). The Financial Times also reports that investors are losing interest in the Trump-era giveaway due to inflation and high interest rates. All eyes are once again on the Assembly, which has refused to vote on Sen. Gianaris and AM Dinowitz’s bill for the past two years. Read our joint memo of support for the bill.
• More on housing subsidies in the budget:
  • Friend or foe? Here’s what the new tax break means for office-to-resi conversions (The Real Deal)
  • Will developers try to game 485x to avoid wage, affordability rules? (The Real Deal)
  • Report: Why ‘Affordable Housing Is Rarely Affordable in NYC (Hell Gate). This covers a new report from Community Service Society on how much of the City’s affordable housing ain’t all that affordable.
• GlobalFoundries, which will receive up to $575 million in “Green” CHIPS tax credits from NYS, saw its revenue and profits drop (Times Union). Note that the credits are reimbursements from the state based on expenses – not tax abatements based on revenue or land ownership.
• Albany-area hydrogen energy subsidy darling Plug Power reports more huge losses – $295.8 million in Q1 2024 (Washington Post).
• Boondoggle watch: Owners of a professional sports team have proposed a downtown stadium in Albany (Times Union).
• A state-funded pharmaceutical factory in Dunkirk may finally start manufacturing drugs (Buffalo News).

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