Suffolk IDA should claw back funds from Canon tax breaks

The Suffolk County Industrial Development Agency's website highlights its primary task: "Helping Long Island Thrive."

But giving millions of dollars in tax breaks to a company that slashed Long Island jobs and then wasn't entirely forthcoming about those cuts will not help Long Island thrive. Yet, that's exactly what the Suffolk IDA is doing for Canon U.S.A., Inc.

In a statement to the editorial board, the Suffolk IDA claimed that Canon "remains in full compliance with its agreement." As a result, the IDA maintained Canon's tax breaks even after the company laid off 100 to 150 employees in Melville. Canon told the editorial board it has "provided all the required paperwork and information" to the IDA. The tax breaks, Canon said, help the company "remain rooted within this community."

But Canon refused to tell the editorial board how many employees it currently has at its Melville headquarters or how many people it laid off last year. Cutting jobs and refusing to provide the data isn't indicative of a company "rooted" in the community.

The IDA's refusal to claw back Canon's tax breaks also illustrates broader concerns with the agency's metrics and a lack of consistent standards for IDAs across Long Island. The Suffolk IDA told Newsday it bases decisions on the highest number of jobs a company maintains in a given year. So, a company like Canon could maintain appropriate jobs numbers in January, lay people off in the summer, and still earn tax breaks for the entire year.

That's ludicrous. More than 100 Long Islanders no longer have Canon paychecks that helped them pay their bills and feed their families. Yet, Canon keeps getting its lucrative deal. Canon barely met its promised threshold even before the layoffs; in the first quarter of 2024, Newsday reported, Canon employed 1,092 people in Melville — just 11 jobs more than pledged.

The issue is larger than just Canon or the Suffolk IDA. While Suffolk uses the annual high point of job creation standard, five Long Island IDAs use total employment at year's end, while Islip Town uses the average number of employees in a year. The state, absurdly, has no regulations on measuring and evaluating job creation — an IDA's paramount role.

Something needs to change. State officials should establish benchmarks that allow all IDAs to easily claw back tax breaks when companies don't maintain jobs, and prevent businesses from manipulating poorly crafted agreements.

The Suffolk IDA has a meeting scheduled for Thursday. While Canon isn't on the agenda, it should be. The IDA told the editorial board it has "a strong history of holding companies accountable when obligations aren't met." That should start now. The board must reverse its decision and claw back funds earned on the backs of taxpayers. It should demand more from the companies it helps. That's how Long Island can truly thrive.