STATEN ISLAND, N.Y. — On the heels of the historic CHIPS and Science bill signed into law by President Joe Biden, Governor Kathy Hochul signed first-in-the-nation legislation on Thursday aimed at creating jobs, kick-starting economic growth and maintaining important environmental protections — all while making New York a hub for semiconductor or “chips” manufacturing.
The bipartisan legislation signed by Biden promises to provide billions of dollars in incentives to the nation’s semiconductor industry.
“Green CHIPS” promises to help New York capitalize on attracting chip manufacturers to the state, which is expected to generate at least a $3 billion investment, creating 500 new jobs per project, and lowering greenhouse gas emissions related to chip production, according to Hochul.
In doing so, the legislation will also help make the everyday technologies that use these chips more affordable, and improve the state’s economic standing overall, she said.
“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 transformative 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. If you’re looking for a high-tech job or trying to relocate your business, there’s no better place than New York State.”
Supply chain issues and a decline in the United States’ share of global chip production are causing undue hardships to every aspect of the economy, according to state officials. Proponents of the CHIPS and Science bill say this is putting the U.S. at a strategic disadvantage in several critical areas, including national security, technological innovation, and economic growth and independence.
Green CHIPS amends the longstanding, pay-for-performance, Excelsior Jobs Tax Credit program, which provides incentives based on job creation and company investment to better attract semiconductor manufacturing facilities by adding a new Green CHIPS category to the program.
“New York has all the ingredients to be America’s preeminent hub for semiconductor manufacturing and R&D, and the combination of my new federal microchip fab incentives with the State’s new Green CHIPS program will be the one-two punch upstate New York needs to land major investment and create thousands of good-paying jobs in an industry that will dominate this century,” said Senator Charles E. Schumer.
“Simply put — this is the 21st century’s Erie Canal! I applaud Governor Hochul for her bold, decisive action to ensure the future of America is built by New York hands and her partnership in fighting to make the Empire State the global capital for microchip manufacturing,” he added.
Here’s what the New York legislation aims to accomplish:
- 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 opportunity 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.
Green CHIPS projects must be in the semiconductor sector and must result in at least $15 of private investment for every $1 of state investment. To ensure transparency and accountability, all Green CHIPS projects will be listed on New York State’s Database of Economic Incentives at https://esd.ny.gov/database-economic-incentives, as well as in Quarterly Excelsior Jobs Tax Credit Program reports.