2022 New York Laws
TAX - Tax
Article 8 - Department of Taxation and Finance; Commissioner of Taxation and Finance
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.