Spending on economic-development incentives in New York increased 17% over two years to $9.9 billion in 2018, according to a report released Monday by an independent watchdog.

New York’s use of corporate tax breaks has sparked fierce debate in recent months, as some local officials and residents have pushed back against a deal Gov. Andrew Cuomo and New York Mayor Bill de Blasio reached to lure Amazon.com Inc. to Queens. The company has agreed to bring 25,000 jobs to the Long Island City neighborhood, where it plans to build...