Industrial Development Agencies across New York handed out more than $2 billion in tax exemptions last year, while the Finger Lakes region once again led the state in new economic development projects — a trend that’s putting renewed focus on how local governments measure the return on those incentives.
A new report released by State Comptroller Thomas DiNapoli found New York’s 106 IDAs oversaw 4,183 active projects valued at more than $140 billion in 2024, while granting roughly $2.1 billion in tax exemptions statewide. After accounting for payments in lieu of taxes, or PILOT agreements, net tax exemptions totaled more than $1.1 billion.
For the second straight year, the Finger Lakes region posted the highest number of new IDA projects anywhere in New York, with 45 approved in 2024 carrying a combined value of $555 million. The region — which includes Ontario, Seneca, Wayne and Yates counties — also reported 650 active projects overall, $83.7 million in net tax exemptions and more than 20,000 net jobs gained.
The report separates Cayuga County and Auburn into the Central New York region, while Schuyler County is grouped into the Southern Tier. Central New York IDAs reported 278 projects and 12,531 net jobs gained in 2024, while Southern Tier IDAs reported 309 projects and 7,356 net jobs gained.
The data paints a mixed picture for communities across the region.
On one hand, IDAs continue to drive large-scale investment activity and are increasingly being used to support manufacturing, logistics, housing and clean energy projects. Statewide, the total value of IDA projects has climbed nearly 68% over the last decade even as the overall number of projects has declined.
On the other hand, state auditors are raising questions about oversight and accountability — particularly when projects fail to deliver promised jobs or when local agencies fail to properly monitor agreements.
That issue landed directly in Auburn this year.
A state audit of the Auburn Industrial Development Agency found officials failed to properly approve or monitor projects and did not adequately track whether promised economic benefits materialized. Auditors found eight of 15 reviewed projects failed to meet job creation goals, while officials did not consistently conduct site visits, obtain annual reports or pursue clawbacks when benchmarks were missed. The audit also found problems overseeing PILOT agreements, resulting in delayed distributions to taxing jurisdictions.
The broader statewide report also showed job growth tied to IDA projects slowing somewhat in 2024. Businesses receiving IDA assistance projected creation of 196,067 jobs statewide, down 3.3% from the prior year, while net jobs gained fell nearly 10%.
At the same time, tax exemptions continued rising. Property tax breaks accounted for roughly 87% of all exemptions granted by IDAs statewide in 2024.
DiNapoli warned in the report that while IDAs can help attract investment and spur economic activity, local officials need to closely evaluate whether projects are delivering measurable public benefit.
“Local officials and other stakeholders should monitor the costs and benefits associated with IDA projects to ensure that these investments yield positive results for their residents and deliver on the job creation, retention and other commitments being made,” DiNapoli said.
The report also highlights a growing shift in the types of projects receiving IDA support. Clean energy projects statewide climbed from just 27 in 2020 to 232 in 2024. Meanwhile, manufacturing remained the largest category by number of projects, though finance, insurance and real estate projects generated the largest average tax exemptions.
For communities like Geneva, Auburn and counties throughout the Finger Lakes and Central New York, the findings underscore a broader debate already playing out locally: whether aggressive use of tax incentives is truly building sustainable economic growth — or simply shifting more of the long-term tax burden onto residents and school districts.
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