§ 181. Tax expenditure reporting. 1. Definitions. For the purposes of
this section, the following definitions shall apply:

(a) "Tax expenditures" shall mean features of the tax law that by
exemption, exclusion, deduction, allowance, credit, preferential tax
rate, deferral, or other statutory device, reduce the amount of
taxpayers' liabilities to the state by providing either economic
incentives or tax relief to particular classes of persons or entities,
to achieve a public purpose.

(b) "Cost of tax expenditure" shall mean the aggregate, estimated
amount by which a tax expenditure reduces taxpayers' liabilities to the
state on a taxable year basis, or on a calendar year basis if a taxable
year basis is not appropriate.

2. Annual tax expenditure report. In addition to the information
required by article seven of the constitution and section twenty-two of
the state finance law, the governor shall submit to the legislature, as
early as practicable, but no later than thirty days after submitting the
budget, a tax expenditure report containing the following information
and statements relating to tax expenditures in articles nine (other than
section one hundred eighty), nine-A, thirteen-A, twenty-two,
twenty-eight, thirty-one, thirty-two and thirty-three of the tax law:

(a) an enumeration of such tax expenditures;

(b) the provisions of law authorizing such tax expenditures, their
effective dates, and, if applicable, the dates on which such tax
expenditures expire or are reduced;

(c) if reliable data are available, estimates prepared by the
commissioner of taxation and finance, in conjunction with the director
of the budget, of the cost of such tax expenditures for the (i) current
taxable or calendar year and (ii) the five preceding years;

(d) any recommendations of the governor regarding continuing,
modifying, or repealing such tax expenditures, and such other
information regarding tax expenditures as the executive may feel useful
and appropriate;

(e) if the governor's budget includes proposals for the expiration,
modification, or repeal of such tax expenditures or for the addition of
tax expenditures in or to such articles or such law, such report shall
also contain, to the extent reliable data are available, an analysis of
the number and types of persons and entities benefiting or expected to
benefit from such tax expenditures, an estimate of the costs of such tax
expenditures for the coming fiscal year, and an explanation of the
reasons for the proposals;

(f) comment, if any, on the effectiveness and efficiency of other tax
expenditures; and

(g) general cautionary and advisory notes concerning limitations of
data, estimation procedures, sampling errors and imputed values,
prominently displayed.

3. Any information relating to tax expenditures furnished by the
commissioner of taxation and finance shall be furnished in accordance
with the secrecy provisions of the tax law.