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Q&A
IDA projects' tax revenue impact on New York City
0:29:26
·
82 sec
Council Member Amanda Farías inquires about the tax revenue impact of NYC IDA (Industrial Development Agency) projects for FY '25. Andrew Kimball explains that all EDC development projects undergo a return to city analysis, which includes projections of job creation, overall economic impact, and tax return to the city. He emphasizes that all approved projects have a positive impact on tax revenue that exceeds any tax breaks or capital investments.
- IDA projects are required to have a net positive impact on the city's budget
- EDC conducts return to city analysis for all development projects
- Kimball estimates $151 million in tax revenues on IDA projects for fiscal year 2024
Amanda Farías
0:29:26
I'd like to start off with discussing the economic impact of the investment projects.
0:29:34
State law requires that NYC IDA undertake a cost benefit analysis before providing any discretionary tax breaks.
0:29:42
This evaluation must show that the tax break will have a net positive impact on the city's budget, so every approved IDA investment should have a positive tax revenue impact on the city.
0:29:52
How much in tax revenue impact do you think IDA projects are having in FY '25?
Andrew Kimball
0:29:59
Well, let me just start by saying there's a return to city analysis, which is similar to what the state legislature requires for IDA build for every one of our development projects that we go through with the city's OMB.
0:30:13
And that analysis includes a projection of job creation, direct and indirect.
0:30:19
It includes an analysis of overall economic impact, of goods sold, ripple effect on the local economy, and an analysis of tax return to the city.
0:30:31
All of those projects, all the projects we undertake, otherwise OMB doesn't allow us to undertake them, have a positive impact in terms of return to city and net positive tax revenue that far exceeds the value of any tax break or capital investment.