A Westbury-based drug manufacturer is set to forfeit approximately $400,000 in tax incentives for failing to meet the employment numbers it committed to when it was awarded tax breaks by the Nassau County Industrial Development Agency in 2013.
P&L Development had originally promised to employ 480 people across three facilities in Westbury and one in Hicksville by the end of last year. However, the company only employed 346 people, according to IDA reports.
Due to its failure to meet the target, P&L’s property tax savings will be reduced by approximately $50,000 this year and for the following seven years, under an agreement reached with the IDA.
Efforts to reach P&L Development were unavailing.
State law requires all IDA clients to submit annual employment data. Should a client fail to meet its promised job creation numbers, IDAs have several options: they can claw back past benefits, reduce future benefits, or take no action and monitor the client for compliance in the subsequent year.
P&L, which supplies CVS, Walmart, Target, Costco, and other retail chains with medications such as cough and cold remedies, digestive products, and analgesics, was forced to lay off employees and keep positions unfilled last year due to weakened product demand and rising labor costs.
Its real estate attorney, Andrew Komaromi, informed the IDA in September of its expected failure to meet the employment commitment for 2025 and subsequent years, according to published reports.
The company offered to reduce the minimum job commitment to 320 for the next eight years. Additionally, P&L requested a smaller reduction in property tax savings, provided that the IDA did not seek the recapture of previously received aid.
The IDA board unanimously accepted P&L’s proposal in a vote held earlier this year.
“P&L Development remains a significant employer in Nassau County, and we want to work with the company to support its continued success here,” said IDA Executive Director Sheldon L. Shrenkel. “The revised agreement ensures the company maintains meaningful job commitments while increasing payments to local taxing jurisdictions. This balanced approach keeps jobs in our region, strengthens our tax base, and reflects the IDA’s commitment to both accountability and economic stability.”
