New York offers incentives for ‘green’ chipmakers
ALBANY — In an effort to become as competitive as possible for a next wave of computer chip factory projects being planned in the United States, Governor Kathy Hochul’s economic development team is seeking to codify the amount of tax breaks that she will be willing to offer businesses to build here.
State Sen. Jeremy Cooney, a Democrat from the Rochester area, is sponsoring something called the Green CHIPS bill that would allow the state to offer up to $500 million a year in credits. tax chip companies that build new factories in New York State that focus on reducing carbon emissions and greenhouse gases.
The bill would require projects to create at least 500 jobs and have capital costs of at least $3 billion, which is consistent with an average-sized chip factory. They should also have a “green” component.
States across the country line up in front of chipmakers as Congress debates whether to pass a $52 billion grant package that would provide companies with billions of dollars to build new national chip factories .
However, the legislation, which has not yet been passed and is designed to help combat China’s growing influence in the global chip industry, requires the state to provide incentives as well.
The New York bill sets out how companies looking to build chip factories in New York can take advantage of the Excelsior Employment Tax Credit program, which provides more lucrative tax breaks to projects that have a “green” component, meaning they aim to reduce greenhouse gases in the manufacturing process or they make a product that is used in renewable energy technologies, such as chips used in electric vehicles .
“Increased manufacturing of semiconductor chips in the United States is critical to our economic and national security, and ultimately to controlling inflation,” said Empire State spokeswoman Kristin Devoe. Development, a state economic development agency. “Green CHIPS will put New York State in a position of strength to ensure that jobs and related investments happen here – and will do so in a way that protects the environment, provides thousands of jobs well remunerated and offers real benefits to the community.
The Excelsior Employment Tax Credit Program offers state tax credit packages based on a percentage of salaries, capital expenditures, and research and development costs. The percentages are higher for projects qualified as “green” projects.
Cooney’s office said the bill was not introduced on behalf of any specific company, but was designed to differentiate New York State from other states seeking to compete for chip factories.
“This bill anticipates federal action that will set the stage for this state to be a leader in the development of Green CHIPS,” Cooney spokesman Miles Cunning said.