What's happening
This bill prohibits public funds, financial incentives, subsidies, or tax exemptions for projects already under construction, except for projects facing unexpected environmental contamination costs.
Why it matters
Targets “in development” projects. The bill specifically defines “in development” as projects where construction has already started (including site clearing or foundation work), aiming to close loopholes that allow developers to seek public assistance after work is underway.
Restricts retroactive public support. By blocking financial incentives or tax exemptions for projects already under construction (with limited exceptions), the bill prevents developers from beginning work and then seeking government aid, which can lead to inefficient or unfair allocation of public resources.
Exception for environmental contamination. Projects that encounter unexpected environmental hazards and resulting cost increases during construction can still qualify for assistance, reflecting a recognition that such issues are unpredictable and could otherwise halt or derail development.
Potential effects on project planning and public budgets. The measure could encourage developers to secure all possible public support before starting construction, increasing transparency and allowing governments to better assess and manage the fiscal impact of incentives and subsidies.
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Who cares
Industrial development agencies
The bill would bar agency funding, financial incentives, subsidies and tax exemptions for projects where construction has already begun when they apply, subject to an environmental contamination exception.
Developers and project owners
Starting site clearing, excavation, foundation work or structural construction before applying would make a project ineligible for the covered assistance unless the exception applies.
Developers facing newly discovered contamination
Projects could still qualify if environmental contamination discovered during development requires a significant increase in project costs.
Headline styles
Stop Incentives for Ongoing Projects
Plain English, a few words. Used as the page title.
Sponsors
Assembly Member · Assembly District 40
1 Co-sponsor
History
- Referred to local governments
- Referred to local governments
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
650
2025-2026 Regular Sessions
IN ASSEMBLY (Prefiled)
January 8, 2025
Introduced by M. of A. KIM, FORREST -- read once and referred to the Committee on Local Governments
AN ACT to amend the general municipal law, in relation to preventing the use of funds, financial incentives, subsidies or tax exemptions for projects already in development
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 854 of the general municipal law is amended by adding a new subdivision 22 to read as follows:
(22) "In development" - shall mean a project for which active construction, including but not limited to site clearing, excavation, erection of building foundations or structure, has already commenced.
§ 2. Section 862 of the general municipal law is amended by adding a new subdivision 3 to read as follows:
(3) Except where environmental contamination requiring a significant increase in project costs is discovered during the development of the project, no funds, financial incentives or subsidies of the agency shall be used in respect of any project which is already in development at the time such project applies for such funds, financial assistance, incentives or subsidies.
§ 3. Section 874 of the general municipal law is amended by adding a new subdivision 13 to read as follows:
(13) Except where environmental contamination requiring a significant increase in project costs is discovered during the development of the project, no tax exemptions shall be granted to any project if the project is already in development at the time such project applies for the issuance of the tax exemption.
§ 4. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00231-01-5
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.