Subsidy Sheet: NYS Comptroller: NYC corporate tax breaks shoddily documented


A State Comptroller audit of the NYC Industrial Development Agency (NYCIDA) found that the authority’s paperwork has been lacking at best, nonexistent at worst. Some highlights from the audit:

  • “For 15 of the 17 projects, either NYCIDA did not do a [financial feasibility] analysis or the analysis was done incorrectly.”
  • “Information on businesses deemed ineligible [for financial assistance] or whose applications stalled prior to award either is not kept or is incomplete.”
  • “Two projects that expected to hire 472 FTEs were granted multiple extensions (8 months and 36 months) for completion of construction. As the projects have not yet completed construction, the City has not received any of the expected benefits. These two projects received approximately $2.67 million in sales tax, property tax, and mortgage recording tax exemptions.”
  • “Two projects that were terminated had the same number of employees as when they started, yet they received benefits of $113,950.”

Though these types of findings seem to show up on a regular basis, there’s a remarkable lack of urgency from the state on saving millions in taxpayer dollars from businesses.

NY corporate giveaway news from this week:

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