Assemblymember Harry Bronson (D-Rochester) announced that he co-sponsored and helped pass legislation that would provide up to $500 million per year in Excelsior Jobs Tax Credits for chip companies that build new manufacturing facilities in New York State (A.10507). In turn, these projects would help New York State reach its sustainability goals by reducing greenhouse gases at facilities, as well as create at least 500 new jobs and invest at least $3 billion in capital costs.
“In the midst of an ongoing supply-chain shortage that threatens to hinder New York’s economic revival, there’s no better time to bring this piece of legislation to fruition,” Bronson said. “This measure would incentivize chip companies to focus on reducing carbon emissions and expanding our workforce when building new facilities, while putting us in a position to lead our nation’s semiconductor manufacturing revolution. The passage of this bill is a win for local economies, our environment and the future of our state.”
Semiconductors are a critical component of a wide variety of technology, many of which we use every day like smartphones, computers and cars. Like many business sectors, the semiconductor industry was hit hard by the pandemic and continues to face production and shipping challenges due to supply chain disruptions.
This legislation helps address this issue by offering up to $500 million per year in tax credits to eligible Green CHIPS projects through the Excelsior Tax Credit program over a 20-year period. Eligible projects must meet certain job creation and capital investment criteria as well as include measures to mitigate the project’s greenhouse gas emissions. This bill would supplement the program that Congress is currently considering which would subsidize domestic chip fabrication businesses. The Green CHIPS bill creates an exciting array of opportunities for our spacious upstate communities to take advantage of, while making New York State more competitive in securing contracts and federal funding in the future, Bronson noted.