N.Y. Tax Law § 180: Independent analysis

§ 180. Independent analysis. 1. The department shall contract with an

economic impact firm for the provision of an independent, comprehensive,

analysis of each tax credit, tax deduction, and tax incentive

established in this chapter or any other chapter of the law which

relates to increasing economic development including, but not

necessarily limited to, increasing employment, developing the state's

workforce, and increasing business activity. Such analysis shall include

the relevant programs run at the state agency level, including relevant

programs administered by executive agencies, authorities, commissions,

and other government run entities, and shall not include an analysis of

individual private entities or individual taxpayers. Such analysis shall

include, but need not be limited to, a complete and thorough evaluation

of the return on investment for each tax credit, tax deduction, and tax

incentive, the economic impact of each relevant program, including

direct and indirect benefits, including the creation of temporary

project hires, the fiscal impact of each relevant program, including

revenues received and forgone by municipalities and New York state, as

applicable. For the purposes of this section, "return on investment"

shall mean: (a) total job creation, including temporary project hires

resulting from each project supported by each relevant program, and

retained jobs; (b) whether the expenditures by the state on each tax

credit, tax deduction or tax incentive result in an increase or decrease

in tax revenues for New York state municipalities, and New York state;

(c) other estimated quantifiable economic benefits, including but not

necessarily limited to personal income; indirect, induced, long term,

and temporary job creation; and private investment for each tax credit,

tax deduction and tax incentive; (d) whether similar job creation or

private investment would have occurred without the existence of a state

tax incentive; and (e) other qualitative economic benefits that improve

the economy, and provide opportunities for advancement for New York

residents, including: (i) global media exposure; (ii) increased tourism

attraction and positioning of New York as a destination, providing

quality of life amenities to assist with community development,

placemaking, positioning communities for add-on private sector

investment, making New York competitive on the basis of cost and other

attraction amenities; and (iii) contributing to the positive perception

of the state and its regions to assist with business attraction and

creating economic opportunity for New Yorkers.

2. Prior to the analysis pursuant to subdivision one of this section,

the economic impact firm that the department contracts with may solicit

input from leaders in the business community, organized labor and

economic development stakeholders, including, but not necessarily

limited to representatives from nonprofits, academic institutions, and

leading New York state community development experts.

3. Such analysis shall be completed and submitted to the department no

later than January first, two thousand twenty-four and shall be posted

publicly on the department's website within thirty days of submission to

the department. The analysis shall also be submitted to the governor,

the temporary president of the senate, the speaker of the assembly, and

the chair of the senate finance committee and the chair of the assembly

ways and means committee.

4. The economic impact firm providing the department's comprehensive

analysis shall adhere to the requirements in this subdivision.

Notwithstanding this subdivision, the department may contract with a

firm upon a written determination by the commissioner which shall detail

that such firm was awarded such contract on the basis that no firm meets

the requirements set forth in this subdivision.

(a) Such economic impact firm shall be prohibited from providing

analysis services to the department if the analysis partner having

primary responsibility for the analysis, or the analysis partner

responsible for reviewing the analysis, has performed analysis services

for the department in the past three fiscal years.

(b) Such economic impact firm shall be prohibited from performing any

non-analysis services to the department contemporaneously with the

analysis, including: (i) bookkeeping or other services related to the

accounting records or financial statements of such department; (ii)

financial information systems design and implementation; (iii) appraisal

or valuation services, fairness opinions, or contribution-in-kind

reports; (iv) actuarial services; (v) internal analysis outsourcing

services; (vi) management functions or human services; (vii) broker or

dealer, investment advisor, or investment banking services; and (viii)

legal services and expert services unrelated to the analysis.

(c) Such economic impact firm shall be prohibited from providing

analysis services to the department if an employee assigned to the

analysis has performed analysis services for the department or has been

employed by the department in the past three fiscal years.