Business Tax Breaks Triple In State Since 2007

This year New York is offering businesses 50 different tax breaks at a cost to taxpayers of $1.7 billion, almost triple what it was six years ago.

According to a report by the Rockefeller Institute in Albany, only about one percent of businesses are getting the majority of the breaks and the report says there's no proof that the tax breaks even increase business.

"There is no conclusive show that business tax incentives have an impact on net economic gains to states," the report says.

And it adds that lower taxes for some businesses require higher tax rates for for the vast majority of the rest of us in order to offset breaks.

Without the nearly two billion dollars in tax credits the state currently gives out the report states that all sorts of taxes could be lowered for everyone including income taxes, corporate taxes, and the sales tax.

The report said that the two largest tax credits - to rehabilitate environmentally contaminated sites and to aid film production - primarily benefit the New York City area.

However 2 On Your Side found that Western New York significantly benefits in both areas.

Mayor Byron Brown says there are numerous examples of brownfield tax credits resulting in saving or creating jobs, among them the Blue Cross/Blue Shield headquarters downtown with its 1400 jobs, and Hydro Air and its 300 jobs in Lakeside Commerce Park...

Mayor Brown: "Without these tax credits it would be very expensive to clean these old industrial sites, to make them available for new investment, for development, for job creation."

Tim Clark heads the Buffalo Niagara Film Commission and says the movie and television business in Western New York would dry up without the tax incentives.

Tim Clark: "They're hugely important and that seems to be the first question that filmmakers often pose to us is 'what tax benefits are there to shoot in New York State and particularly upstate New York,' so it's really a critical piece of the film industry.


To find out more about Facebook commenting please read the
Conversation Guidelines and FAQs

Leave a Comment
More Stories