New York Assembly Bill A07933

New York 2025-2026 Regular Session

• Introduced: 4/15/25
• Refer: 4/15/25

Caption

Enacts the corporate accountability for tax expenditures act; standardizes applications for state development assistance for empire zone assistance and industrial development agency assistance; requires submission of certain development assistance agreements to the department of taxation and finance; requires recipients of certain development assistance to submit progress reports which include certain information and disclosures; makes certain recapture provisions; defines relevant terms.

Impact

If passed, A07933 would significantly affect how corporations engage with state economic development programs. The bill seeks to streamline applications and enhance oversight, requiring more detailed disclosures and allowing state authorities to verify compliance by inspecting project sites and records. The recapture provisions outlined in the bill also stipulate that if a corporation fails to meet the requirements of job creation or retention, it could be compelled to repay the received benefits, which would protect taxpayer interests and ensure accountability in the use of public funds.

Summary

Assembly Bill A07933, known as the Corporate Accountability for Tax Expenditures Act, is aimed at enhancing accountability among corporations receiving state assistance through tax expenditures. The bill mandates standardized applications for state development assistance, ensuring that all recipients adhere to strict reporting requirements. This includes submitting progress reports that detail the creation or retention of jobs, as well as the capital investments they are obligated to make as part of the assistance agreement. The overarching intent is to ensure transparency and that taxpayers receive tangible benefits from the assistance provided to businesses.

Contention

Despite its goals, A07933 has raised concerns among some stakeholders. Critics argue that increased regulation could deter businesses from seeking necessary assistance for expansion or relocation, potentially stifling economic growth. There are also fears that the stringent requirements may disproportionately impact smaller businesses that might struggle with compliance compared to larger corporations. The debate centers on balancing corporate accountability with creating an inviting environment for economic development, making it a point of contention among lawmakers and business leaders.