New York’s Industrial Development Agencies (IDAs) reported $784 million in net tax exemptions in 2018, up 4.4 percent from 2017, according to an annual report, that summarizes the performance of IDAs issued today by New York State Comptroller Thomas P. DiNapoli.
“Projects that come from Industrial Development Agencies continue to produce jobs across the state, but in the past couple of years the pace has slowed,” said DiNapoli. “As our local economies build back from the shock of the pandemic, IDAs may have a critical role in helping businesses and communities get back on their feet, with careful review of the tax breaks they offer and the impact on local government budgets.”
DiNapoli’s report found:
- The state’s 109 active IDAs provided approximately $1.5 billion in total tax exemptions in 2018 and reported 4,289 active projects with a total project value of $106 billion, an increase of $7.4 billion from 2017.
- The majority of projects – 61 percent – were located in upstate regions and accounted for 41 percent of the total value of all projects. Downstate projects accounted for nearly 59 percent of the total value. The Capital District region had the highest total project value upstate with $13.1 billion, while New York City had the highest downstate, with $30.9 billion.
- There were 13 projects each valued at $1 billion or more ($32.9 billion total), which was over 31 percent of the total value of all projects. The Dutchess County IDA and the City of Glen Cove IDA each had one of these projects, the Saratoga County IDA had two, and the rest were New York City IDA projects.
- Manufacturing projects accounted for 1,118, or 26 percent, of all active projects.
- Two-thirds, or 2,844, of the IDA projects resulted in net job gains in 2018. All IDA projects together produced a net total of 179,057 jobs.
- Downstate projects accounted for 60 percent of the total net jobs gained statewide, compared to 40 percent upstate. The Long Island region accounted for nearly 26 percent of the statewide total.
- Service industry positions accounted for 45,629 (25 percent) of job gains closely followed by finance, real estate and manufacturing, each with just over 21 percent. Temporary construction jobs totaled 34,682 in 2018.
- In 2018, project operators projected that they would create 229,257 jobs and retain another 280,932 jobs.
- The median salary of jobs to be created was estimated at $38,570 for full-time employees.
In addition to reviewing the financial reports submitted by IDAs, the Office of the State Comptroller audits IDAs and provides training to IDA officials on various topics, including recent legislative reforms and how to improve their compliance with reporting requirements.