ALBANY, N.Y. (WTEN/WROC) — Gov. Kathy Hochul completed the signing of a Green CHIPS bill Thursday, adding a $3 billion and 500 new job investment to uplift the state’s semiconductor production.
On the heels of the historic CHIPS and Science Bill being signed into law by President Biden, Senate Majority Leader Chuck Schumer joined the governor for the signing of legislation Thursday morning.
The signing will provide a new state investment that complements the federal CHIPS incentives and helps further position New York to land more major microchip manufacturers.
The bill was passed by the state Senate in June. It provides the governor’s administration with hundreds of millions of dollars in state tax incentives to entice computer chip manufacturers to build new factories in upstate New York.
“New York is poised to lead the nation in semiconductor manufacturing — and as always, we’re doing it in the cleanest, greenest way possible,” Hochul said. “This legislation, in addition to longstanding investments in this industry and bipartisan action from the federal government, takes a significant step forward in creating jobs and sparking economic growth in New York.”
Green CHIPS will bring in at least $3 billion investment, creating 500 new jobs per project, and lowering greenhouse gas emissions related to chip production, according to the governor’s office.
The bill is a direct response to supply chain issues and a decline in the United States’ share of global chip production. Green CHIPS is promised to ensure the following:
- At least 500 new jobs and at least $3 billion in qualified investment over a 10-year term. Projects in good standing can then enter a second 10-year term with at least 500 more new jobs and $3 billion more in qualified investment above and beyond the first phase.
- An approved clean energy plan that mitigates the project’s GHG emissions and other environmental impacts.
- Significant investment in workforce and community development, including training and education benefits and programs to expand employment opportunities for economically disadvantaged individuals.
- Prevailing wage rates for project construction.
Job creation and investment milestones must be met before claiming any tax credits, in line with the Excelsior Tax Credit Program’s pay-for-performance model
The bill creates a new subset of tax incentives the state can offer to chipmakers through its Excelsior Business Tax Credit Program, which provides tax incentives for job creation, capital investments, research, and development. The total would be capped at $500 million annually over 20 years, but it would be difficult for the state to attract enough chip fabs over that period to use up their credits.