Subsidy Sheet: OZ grifters and tax dodgers want to pay billions less to New York

We’ve been sounding the bell for some time about changes to federal Opportunity Zone tax breaks potentially costing New York tens of millions in revenue as soon as next year. And – ding, ding – the various grifters and tax dodgers already benefiting from the OZ giveaway want more and are circulating a letter to the US Senate that would effect those very changes. 

As we wrote earlier, OZ supporters were disappointed with the US House bill for not enabling “interim gains relief,” which would allow investors to invest previous OZ gains in other OZs and still not have to pay capital gains taxes. This would circumvent the so-called “10-year tax break” that requires investments to be held for a decade in order for profits to be tax-free.

The Citizens Budget Commissions has said the OZ program could cost NY up to $424 million annually from 2029 – but if the federal bill includes interim gains relief, OZ costs could arrive as early as 2026. There is still time for the Legislature to pass S3340 (Gianaris) / A3246 (Dinowitz) and save NY billions.

More NY corporate giveaway news from this week:

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