Bill > S00220

This bill establishes a comprehensive framework for state and local government entities to recoup financial incentives given to businesses when those businesses fail to meet the terms of their original agreements. The legislation requires that all economic incentives (such as awards, grants, loans, and tax abatements) include specific provisions like the timeframe for completion, purpose and amount of the incentive, number of jobs to be created or retained, and development plans. If a recipient does not fully execute the agreed-upon objectives, they may be required to repay some or all of the incentive with interest. The bill provides nuanced repayment guidelines, allowing partial refunds based on the degree of job creation or facility development. Businesses can potentially avoid full repayment if they can demonstrate that their failure was due to unforeseen circumstances beyond their control, such as significant market challenges. The legislation also mandates annual reporting to state leadership about incentive recoupments and includes a provision for recipients to seek review of repayment determinations through legal channels. Importantly, the law applies only to new contracts, agreements, and understandings entered into after its effective date, ensuring transparency and accountability in economic development incentive programs.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S220