The debate continues as to whether various state tax credits and incentives are truly effective in terms of achieving their intended goals. Another way to look at the effectiveness of a tax credit is to look at whether the companies participating in the tax credit program are meeting all the requirements.
New York’s Empire State Development Corporation (ESDC), which administers the state’s Excelsior Jobs Program was recently in the spotlight as a result of an audit released July 7 by the New York State Comptroller’s Office, according to a Bloomberg BNA Weekly State Tax Report article by Gerald B. Silverman.
The comptroller conducted an audit of the Excelsior Jobs Program and found that certain companies granted tax credits under the program weren’t meeting the job creation and investment requirements.
As part of the audit, the comptroller looked at 25 companies participating in the Excelsior Program and found that the ESDC “failed to exercise due diligence when approving any of the 25 sampled companies for participation in the program and does not follow its own protocol for scrutiny of applications,” according to a news release from the Office of the New York State Comptroller.
In trying to determine whether a tax credit program is effective, several states have instituted a requirement that certain programs be reviewed on a regular basis.
The PEW Charitable Trusts tracks how many states have enacted specific legislation mandating the evaluation of their tax incentive programs. Currently, there are 22 states with tax incentive evaluation programs, according to PEW.
Although New York is not currently listed by PEW as having a tax credit evaluation law, time will tell if the state decides to enact such legislation in the future.
*Continue the discussion on Bloomberg BNA's State Tax Group on LinkedIn: Should all states enact legislation requiring the periodic evaluation of their tax credit and incentives?
For more information about tax credits, check out Bloomberg BNA’s Credits and Incentives Portfolios by signing up for a free trial of the Bloomberg BNA Premier State Tax Library today.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)