EXPANDING A TAX CREDIT: Democrats and Republicans are calling to expand a tax credit that an independent audit found brings in one of the lousiest returns on investment of any state tax break. In a show of bipartisanship, Republican Sen. Jim Tedisco and Democratic Assemblymember Marianne Buttenschon are promoting a bill that would expand the state’s 20 percent investment tax credit to cover the construction of housing on New York farms. Currently, the credit only applies to businesses that make investments in buildings, machinery, or equipment and doesn’t address residential housing for farm workers. But the call to expand the tax credit also comes as most of the state’s tax credit programs have come under heightened scrutiny after an independent audit published earlier this year. The audit showed the majority of the state’s tax credit programs offer a bad return on investment for the state. The report found that the Income Investment Tax Credit earns among the lowest return on investment of any state program – it brings in 2 cents in direct taxes for every dollar invested by the state. However, the investment tax credit was analyzed across a variety of industries, and the auditors said they couldn’t disaggregate the data to study industries, like agriculture, individually. In an interview, Tedisco pushed back on the idea that the sought-after expansion of the tax credit would be a bad deal for the state. Tedisco said providing a benefit for construction of affordable housing is unrelated to the current types of credits offered by the incentive, so the past poor performance of the tax credit isn’t applicable. “They’ll be investing back in the community with the income taxes and sales taxes in the purchases now that they have job funding and an affordable house,” he said. — Jason Beeferman ENDING FOSSIL FUEL TAX BREAKS: As state policymakers search under the couch cushions for revenue to fund a host of priorities, environmental groups and some Democratic lawmakers want to end tax breaks for some fossil fuels. New York’s tax code is riddled with exemptions for fossil fuel use — to the tune of $1.6 billion annually. Much of that is for home heating fuels or other politically sensitive constituencies like farmers. But a scaled down version of a bill to end all the exemptions (S3389) is included in the Senate budget. Assemblymember Jo Ann Simon, the sponsor of the bill, said she’s pushing it with Assembly negotiators as a revenue raiser. “This is not about raising taxes,” Simon said. “This is about eliminating a tax exemption to folks who are completely misaligned with our state climate goals and mandates.” The scaled-back measure targets tax breaks for commercial airline fuel and highly polluting “bunker” fuel used in the shipping industry, among others. It would increase state revenue by about $256 million. “We're working very hard on the Assembly side to get this to the table to ensure that, as this is being discussed in the negotiations, that the Assembly is open and having those conversations,” Simon said. “They've indicated to me that they're willing to do that.” Ending the exemptions is supported by a coalition of groups dubbed the “Stop Climate Polluter Handouts Act Coalition” including the Natural Resources Defense Council, the Climate Reality Project and NYPIRG. “The current bill really touches on some of the worst greenhouse gas emitting fuels,” said NRDC director of New York State government affairs Rich Schrader. — Marie J. French NYC IMMIGRANT WORKFORCE NOT GROWING: A new report from state Comptroller Tom DiNapoli shows the size of the city’s immigrant workforce has remained flat over the past decade. From 2015 through 2023, the nation’s population of foreign-born workers grew 18.5 percent, but New York City’s population decreased by 0.6 percent. The drop in the immigrant workforce comes as New York City is facing an unprecedented influx of asylum-seekers, most of whom are waiting for work authorizations to enter the city’s labor market. “There are still many barriers for individuals who come to the U.S. looking for work and a better life,” DiNapoli said in a statement. “Federal immigration policy must be reformed to ensure that the economic prosperity that foreign-born workers have helped fuel in New York City can continue.” — Jason Beeferman
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