State Senator Hugh T. Farley (R,C, I - Schenectady) announced on March 9th that he and his colleagues in the New York State Senate passed a bill (S.2682) to repeal a tax on local economic development agencies that hinders job growth and economic investment. The tax, first enacted in 2009, provides a direct obstacle to the ability of Industrial Development Agencies and Authorities (IDAs) to invest in new projects, support local businesses and create jobs.
The measure passed mirrors a proposal included in Governor Cuomo’s Executive Budget to remove this tax and restore IDA funding.
IDAs facilitate economic development in municipalities throughout the state and are particularly important in spurring growth and investment during times of fiscal hardship. Rather than support the efforts of IDAs to attract, retain and expand business in New York, a law was enacted in 2009 that taxed certain IDA revenues and, in effect, imposed a $5 million unfunded mandate on local governments.
The bill has been sent to the Assembly.