A new audit from State Comptroller Thomas P. DiNapoli finds that Empire State Development (ESD) has made some progress monitoring high-tech economic development projects—but continues to fall short on performance tracking and public transparency, despite billions in state incentives.
The follow-up report evaluates the agency’s response to a 2020 audit that criticized how ESD administered major tax credit and grant programs designed to attract jobs and private investment in tech-heavy sectors like semiconductors, clean energy, and advanced manufacturing.
Billions invested, but results remain unclear
ESD administers incentive programs including the Excelsior Jobs tax credits and the $10 billion Green CHIPS program. While New York has attracted major players like Micron, IBM, Wolfspeed, and GlobalFoundries, the state has struggled to verify whether public investments are delivering promised job creation.
The original audit found that projects often lacked basic financial vetting and cost-benefit analysis before receiving funds. In some cases, even after millions were spent and construction completed, job targets remained unmet years later.
Audit finds only partial progress
Of the three key recommendations from the 2020 audit, the follow-up found:
- One recommendation was fully implemented: ESD now uses an updated benefit-cost model that draws on national best practices and third-party data.
- Two recommendations were only partially implemented:
- ESD has not standardized performance metrics across programs.
- Public reporting via its project database remains incomplete and inconsistent.
Incomplete data and limited accountability
The audit notes that only 12 of the 31 high-tech projects ESD assessed with cost-benefit analyses are listed in the state’s economic development database. Some terminated projects are missing entirely, which auditors say can mislead the public and obscure outcomes.
While the Excelsior Jobs Program enforces a pay-for-performance structure—requiring companies to hit hiring targets to receive tax credits—other grant-funded programs lack consistent benchmarks or proof of return on investment.
No examples were provided of funds being rescinded when companies failed to meet goals, raising questions about enforcement.
DiNapoli calls for better data, transparency
“Without clearer public reporting and uniform performance measures, New Yorkers can’t tell if these investments are truly paying off,” DiNapoli said. He urged ESD to standardize its metrics, expand the database, and make timely, accurate information publicly available.
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