BILL NUMBER: S4896
SPONSOR: SKOUFIS
 
TITLE OF BILL:
An act to amend the economic development law, in relation to establish-
ing the incentive evaluation act
 
PURPOSE:
Establishes the incentive evaluation commission in order to conduct
periodic evaluations of various economic incentives offered by New York
State.
 
SUMMARY OF PROVISIONS:
Section 1: Amends the economic development law by adding a new article
28 (incentive evaluation act). Provides various definitions. Estab-
lishes the commission's membership and appointment process. Tasks
commission with creating a four-year schedule for evaluating incentives.
Allows commission to contract with an outside entity to conduct the
evaluation. Sets specific criteria to be included within the evaluation.
Section 2: Sets effective date.
 
JUSTIFICATION:
Article 8 of the NYS Tax Law Sec. 180 required a comprehensive, inde-
pendent analysis of each tax credit, deduction, and incentive relating
to increasing economic development in the state. In December 2023, a
report on the economic impact of tax incentive programs was released,
and a central recommendation that followed was for the state to estab-
lish a much more frequent evaluation cycle of these incentives. This
bill promotes best practices by establishing a regular schedule and
specific set of criteria for analyzing incentives in order to ensure
that programs have identified purposes, goals, and are designed effec-
tively for the benefit of the state and its residents.
 
LEGISLATIVE HISTORY:
New bill
 
FISCAL IMPLICATIONS:
TBD
 
EFFECTIVE DATE:
This act shall take effect immediately.