Survey: New York Businesses Flag Climate Law Costs, Tax Increases as Growing Threats to Affordability and Competitiveness
Employers Say Energy Cost Pressures Began During Early Implementation of CLCPA-Related Policies
ALBANY – A Spring 2026 survey of The Business Council of New York State member companies shows a continued concern that rising energy costs, strict climate mandates, and proposed tax increases are making it harder for businesses to operate, invest, and grow in New York.
The survey, sent to more than 1,400 Business Council members, was conducted from March 2026 to April 2026.
The statewide survey of private sector businesses finds that while employers broadly support environmental goals, many believe the Climate Leadership and Community Protection Act (CLCPA) is already increasing costs and needs targeted adjustments to protect affordability and economic competitiveness.
“It’s not surprising that affordability is dominating the political conversation right now, and our members are sending a clear message to lawmakers: affordability, timelines, and competitiveness matter. When those pressures continue to mount, businesses inevitably feel the strain,” said Heather Mulligan, President & CEO, The Business Council of New York State, Inc.
CLCPA: Costs Rising, Affordability at Risk
Over 70% of employers say their energy costs have increased since 2020, when CLCPA-related policies began taking effect, including 40% who say costs have increased significantly. More than four in ten employers describe the CLCPA’s impact on their business as negative, while only a small share report any positive impact to date.
Despite these challenges, employers are not rejecting the law’s goals outright; instead, they are asking for change. A strong majority of surveyed employers support amending the CLCPA, including adjusting timelines or accounting standards, to improve affordability and feasibility for businesses.
Tax Increases Seen as Harmful to Competitiveness
The survey also finds overwhelming opposition to proposed corporate and personal income tax increases at the state and city level. Nearly 8 in 10 employers oppose proposals to increase business or personal income taxes in New York. If enacted, two‑thirds say tax increases would have a negative impact on their business, including nearly half who anticipate a significant negative impact. More than 70% agree higher taxes would make New York less competitive compared to other states when it comes to attracting and retaining businesses.