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April 9, 2008

NY moves to edge 26 companies out of tax-break program

ALBANY, N.Y. (AP) — New York officials are moving to push 26 companies out of a program that gives tax breaks in exchange for promises to create or retain jobs.

The Empire State Development Corp. — New York's economic development arm — says the companies have fallen far short of the jobs or investment projections made in return for Empire Zone benefits.

The $500 million-a-year program has long been criticized as ineffective and state officials last summer vowed reforms.

Officials say nearly 2,400 of the 9,800 companies in the program failed to meet even 60 percent of promised job creation.

The 26 being pushed out of the program are among 171 that provided the least economic return for their tax benefits and didn't explain why when asked.

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