Industrial development agencies (IDA) across the state helped spur 4,320 projects valued at $132 billion in 2022, an increase of 5 percent over 2021, according to a recent report from New York State Comptroller Thomas P. DiNapoli. However, that development can come at a cost to local communities, he warned, as those projects combined received […]
Industrial development agencies (IDA) across the state helped spur 4,320 projects valued at $132 billion in 2022, an increase of 5 percent over 2021, according to a recent report from New York State Comptroller Thomas P. DiNapoli.
However, that development can come at a cost to local communities, he warned, as those projects combined received more than $1 billion in net tax exemptions.
“IDAs were created to help grow local economics, businesses, and job markets,” DiNapoli said in a statement. “The tax breaks they provide businesses can impact local tax collections, however, and New Yorkers should be mindful about weighing the benefits these projects bring to their communities against the cost. My office reports the numbers on local IDAs to help increase their transparency and make them more accountable to taxpayers.”
According to DiNapoli’s report, the number of active projects has remained relatively stable since 2012, but the reported project values have steadily increased.
County IDAs were responsible for 61.8 percent of all active IDA projects, followed by town IDAs at 17.7 percent, city IDAs at 12.7 percent, New York City at 7.2 percent, village IDAs at 0.5 percent, and city-town IDAs at 0.2 percent.
The report found that the 4,320 active IDA projects would create an estimated 213,887 jobs during their lifespan with a median salary of $42,000. Another 224,234 existing jobs would be retained with a median salary of $45,430. The projects would create an estimated 36,607 temporary construction jobs.
The number of net jobs gained in 2022 totaled 204,147, an increase of 15.2 percent over 2021 job numbers.
The total tax exemptions for IDA projects in 2022 amounted to nearly $2 billion, up $63 million from 2021 figures. Property-tax exemptions represented $1.7 billion, or 87.5 percent, of the total tax exemptions.
Payment in lieu of taxes (PILOT) agreements collected almost $854 million in 2022, lowering the net tax exemptions to $1.1 billion, up 4.3 percent from 2021.
Net tax exemptions tended to run higher downstate, with IDAs in New York City, Long Island and Mid-Hudson regions together totaling 57.6 percent of the total.
IDAs reported total revenues of $123 million, down $9.3 million from 2021. Charges for services accounted for
53.8 percent of reported revenues.
Total IDA expenses decreased $3.5 million to $76 million in 2022. Regionally, IDAs in the Finger Lakes region reported the highest expenses at $12.5 million while those in the Mohawk Valley had the lowest at $3 million.
The Finger Lakes led the state with 66 new projects approved in 2021 or 2022, followed by Western New York with 50 projects, and Mid-Hudson with 47 new projects. Statewide, IDAs reported 336 new projects.
The number of clean-energy projects increased by nearly 53 percent from 85 projects in 2021 to 130 projects in 2022.
DiNapoli’s report summarizes the most recent annual data, which is self-reported by IDAs through the Public Authorities Reporting Information System. The data is not independently verified by DiNapoli’s office. Most IDAs operate on a calendar-year basis, with a few exceptions including the New York City IDA.
His office examines IDA costs and outcomes in several ways including performing audits of the operations of individual IDAs, providing training for IDA officials on various topics, and encouraging improvements in IDA procedures and reporting.
DiNapoli’s full report is available online at https://www.osc.ny.gov/files/local-government/publications/pdf/ida-performance-report-2024.pdf?utm_medium=email&utm_source=govdelivery.
