DealerTrack to Repay $4.8 Million in Tax Incentives for Failing To Meet Job Creation Commitments On Long Island

LONG ISLAND, NY – According to a report first published by Newsday, automotive software provider Dealertrack has agreed to return $4.8 million in tax breaks after failing to meet job creation commitments tied to its North Hills facility on Long Island.

The repayment stems from a 2012 deal the company made with the Nassau County Industrial Development Agency (IDA), under which it was granted financial incentives in exchange for pledging to retain and create a set number of jobs over time. However, officials now say Dealertrack fell significantly short of those employment targets.

The IDA voted this week to finalize a repayment agreement, recapturing benefits that were originally meant to stimulate local economic growth. The action highlights the growing scrutiny over public subsidies granted to large corporations – particularly when promised community benefits don’t materialize.

While economic development agencies frequently offer tax breaks to attract or retain major employers, there’s been increasing pressure in recent years to hold companies accountable when job creation goals are unmet.

Dealertrack, now a subsidiary of Cox Automotive, specializes in providing software solutions to automotive dealerships, including tools for digital retailing, dealer management systems, financing and insurance (F&I) processing, vehicle registration and title services, and compliance management. Its technology is designed to streamline dealership operations, accelerate transactions, and connect dealers with lenders and regulatory agencies, making it a key player in the automotive retail technology sector.

Dealertrack was acquired by Cox Automotive in 2015 and occupies a major office space in North Hills and had once been touted as an example of successful local business growth. The IDA decision now marks a rare but notable instance of clawing back previously approved incentives.