Bill > S00657

This bill requires the governor to perform a comprehensive cost-benefit analysis of tax expenditures in New York State. The bill defines key terms like "cost benefit analysis" as a method of determining the value of tax breaks by comparing the tax relief or job creation benefits against the amount of revenue the state foregoes. For different types of tax articles, the analysis will consider factors such as job creation, job retention, investment in the state, and tax relief for specific classes of persons or entities. The governor must develop a specific formula for calculating a "cost benefit analysis ratio" for each tax expenditure and establish a "target ratio" that represents an adequate level of benefit to the state. The annual tax expenditure report will now be required to include detailed analyses of each tax expenditure, including its effectiveness, a comparison of its actual ratio to the target ratio, an explanation of whether it has achieved its original purpose, and a description of the cost-benefit analysis formula and target ratio used. This legislation aims to provide greater transparency and accountability in evaluating the economic impact of tax breaks and incentives in New York State, with the bill set to take effect on the first of January following its enactment.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S657