IDA Projects Reached a Record High Value of $132 Billion in 2022, Received More Than $1 Billion in Net Tax Exemptions
New York's local Industrial Development Agencies (IDAs) reported 4,320 active projects with a record high total value of $132 billion in 2022, an increase of $5 billion (3.9%), from 2021, according to State Comptroller Thomas P. DiNapoli’s annual report.
“IDAs were created to help grow local economies, businesses and job markets,” DiNapoli said. “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 their cost. My office reports the numbers on local IDAs to help increase their transparency and make them more accountable to taxpayers.”
While the number of active projects has remained relatively stable since 2012, reported project values have risen steadily. County IDAs were responsible for 61.8% of all active IDA projects in 2022, followed by towns (17.7%), cities (12.7%), New York City (7.2%), villages (0.5%) and city-town IDAs (0.2%).
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 the State Comptroller’s Office. While most IDAs operate on a calendar-year basis, several, including the New York City IDA, do not.
DiNapoli found IDAs reported the following:
- 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. In addition, the projects are estimated to create 36,607 temporary construction jobs.
- The number of net jobs gained (reflecting current jobs reported by projects minus initial jobs reported) was 204,147 as of 2022, an increase of 15.2% from 2021.
- Total tax exemptions for IDA projects in 2022 amounted to nearly $2 billion, up $63 million, or 3.3%, over 2021. Property tax exemptions represented $1.7 billion, or 87.5% of total tax exemptions.
- Almost $854 million was collected through payment in lieu of taxes (PILOT) agreements in 2022. Net tax exemptions (total tax exemptions minus PILOTs) totaled approximately $1.1 billion, an increase of 4.3% from 2021 and nearly double the $555 million in 2012.
- On a regional basis, net tax exemptions were much higher downstate, with IDAs in New York City, Long Island and Mid-Hudson regions together reflecting 57.6% of the total. Per capita, the New York City IDA provided the lowest net tax exemptions ($26.58 per person) in 2022. The Capital District had the highest ($99.44 per person).
- IDAs’ total revenues of $123 million in 2022 were down $9.3 million from 2021. Charges for services accounted for 53.8% of the reported revenues.
- Total IDA expenses in 2022 were $76 million, down $3.5 million from 2021 (4.4%). The New York City IDA reported the highest expenses ($5.97 million), followed by Genesee County ($4.07 million) and Erie County ($3.86 million). Regionally, IDAs in the Finger Lakes region collectively reported the highest expenses ($12.5 million) while those in the Mohawk Valley had the lowest ($3 million).
- IDAs reported 336 new projects with approval dates in 2021 or 2022, led regionally by the Finger Lakes (66 new projects), Western New York (50 new projects), and Mid-Hudson (47 new projects).
- The largest new IDA project in 2022 by project value ($1.4 billion) was Westchester County IDA’s Regeneron Phase II (aka LOOP Road) project. The project is scheduled to end in 2037 and is projected to create 700 permanent jobs.
- The number of clean energy projects increased 52.9% between 2021 and 2022, from 85 projects to 130 projects. Projects classified as clean energy saw the greatest percentage change in net tax exemptions per project, an increase of 57.7%.
DiNapoli’s office examines IDA costs and outcomes in several ways, including performing audits of the operations of individual IDAs, providing training to IDA officials on various topics, and encouraging improvements in IDA procedures and reporting.
No comments:
Post a Comment