What's happening
This bill requires detailed cost benefit analyses of tax expenditures in New York, including specific formulas and target ratios set by the governor.
Why it matters
Increases government transparency and accountability. by requiring detailed, standardized analyses of whether tax breaks and incentives actually deliver promised benefits to New York State, such as job creation or targeted tax relief.
Empowers the governor. to set and publicly justify specific formulas and target ratios for evaluating every tax expenditure, potentially making future debates about tax incentives more data-driven and less political.
Forces regular scrutiny of existing tax expenditures. not just new proposals—by mandating explanations of their effectiveness, beneficiaries, and whether they meet intended goals, which may lead to reform or elimination of underperforming programs.
Could affect both businesses and individuals. by changing the way tax benefits are justified and possibly leading to changes in the availability or design of credits, deductions, and exemptions if they fail to meet cost-benefit benchmarks.
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Who cares
Headline styles
Analyze Tax Break Costs
Plain English, a few words. Used as the page title.
Sponsors
Assembly Member · Assembly District 40
1 Co-sponsor
History
- Referred to governmental operations
- Referred to governmental operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Analyze Tax Break Benefits
In Senate Committee · Budget And Revenue · Sponsor Liz Krueger
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7738
2019-2020 Regular Sessions
IN ASSEMBLY
May 17, 2019
Introduced by M. of A. KIM -- read once and referred to the Committee on Governmental Operations
AN ACT to amend the executive law, in relation to cost benefit analysis of tax expenditures
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 1 of section 181 of the executive law is amended by adding three new paragraphs (c), (d) and (e) to read as follows:
(c) "Cost benefit analysis" shall mean, for tax expenditures claimed by taxpayers subject to articles nine (other than section one hundred eighty), nine-A, thirteen-A, twenty-eight, thirty-two, and thirty-three of the tax law, a method of determining a tax expenditure's benefit to New York state based on the tax expenditure recipient's projected job creation or job retention and/or investment in the state versus the total amount of revenues foregone under the tax expenditure. For tax expenditures claimed by taxpayers subject to articles twenty-two and thirty-one of the tax law, "cost benefit analysis" shall mean a method of determining a tax expenditure's benefit to New York state based on the amount of tax relief a tax expenditure provides to particular classes of persons or entities.
(d) "Cost benefit analysis ratio" shall mean the ratio calculated by a cost benefit analysis of a tax expenditure.
(e) "Cost benefit analysis target ratio" shall mean the cost benefit analysis ratio level that the governor deems to reflect a tax expenditure's adequate level of benefit to New York state when taking into consideration the amount of revenues the state foregoes because of a tax expenditure and the amount of tax relief or job creation or job retention or investment in the state provided or support by the tax expenditure.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08609-01-9
A. 7738 2
§ 2. Paragraphs (f) and (g) of subdivision 2 of section 181 of the executive law, as added by chapter 23 of the laws of 1990, are amended and five new paragraphs (h), (i), (j), (k) and (l) are added to read as follows:
(f) comment, if any, on the effectiveness and efficiency of other tax expenditures; [and]
(g) general cautionary and advisory notes concerning limitations of data, estimation procedures, sampling errors and imputed values, prominently displayed[.]; and
(h) a cost benefit analysis of each tax expenditure;
(i) a comparison between each tax expenditure's cost benefit analysis ratio and the tax expenditure's target ratio, along with an explanation for any difference between the two ratios;
(j) an analysis of whether each tax expenditure has successfully achieved the purpose for which the tax expenditure was enacted and currently serves, including an analysis of the persons or entities that are benefited by the tax expenditure;
(k) an explanation of the cost benefit analysis formula applied to each tax expenditure; and
(l) an explanation of each tax expenditure's target ratio, including a description of why the ratio reflects adequate levels of tax relief or job creation or job retention or investment in the state.
§ 3. Subdivision 3 of section 181 of the executive law is renumbered subdivision 5 and two new subdivisions 3 and 4 are added to read as follows:
3. Cost benefit analysis formula. The governor shall develop for each tax expenditure a cost benefit analysis formula for determining the cost benefit analysis ratio.
4. Cost benefit analysis target ratio. The governor shall determine for each tax expenditure a cost benefit analysis target ratio.
§ 4. This act shall take effect on the first of January next succeeding the date on which it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.