Governor Hochul Signs Transformative Green CHIPS Legislation to Create Jobs and Lower Emissions by Boosting Semiconductor Manufacturing in New York

 

First-in-the-Nation Legislation Offers Financial Assistance in Exchange for New Jobs, Capital Investment, and Reduction of Greenhouse Gas Emissions

Companies Must Deliver Tangible Community Benefits, Including Prevailing Wage, Workforce Training, and Programs To Expand Opportunities for Disadvantaged Populations

Prepares New York to Take Advantage of Major Economic Opportunities Created by Federal CHIPS and Science Bill Signed into Law by President Biden This Week

 Governor Hochul today signed the groundbreaking, first-in-the-nation Green CHIPS legislation (S.9467/ A.10507) aimed at creating jobs, kick-starting economic growth and maintaining important environmental protections while making New York a hub for semiconductor (also known as "chips") manufacturing. Green CHIPS will help New York capitalize on a historic opportunity to attract chip manufacturers to the state, generating at least $3 billion investment, creating 500 new jobs per project, and lowering greenhouse gas emissions related to chip production. In doing so, the legislation will also help to make the everyday technologies that use these chips more affordable and improve the state's economic standing overall.

This new law also positions New York State to greatly benefit from the federal CHIPS and Science Act to increase domestic semiconductor manufacturing in the United States, which was signed into law by President Joseph R. Biden earlier this week. New York's Green CHIPS bill will help the State to conform to the requirements of the federal program, enhancing its competitiveness against other states looking to attract chip manufacturers, all while ensuring this expansion of advanced manufacturing is environmentally sustainable.

"New York is poised to lead the nation in semiconductor manufacturing — and as always, we're doing it in the cleanest, greenest way possible," Governor 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 and putting our nation 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. 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, as well as in Quarterly Excelsior Jobs Tax Credit Program reports.

Green CHIPS ensures:

• 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.

Since the start of her administration, Governor Hochul has stressed the importance of ensuring New York State's role in developing a robust ecosystem in advanced manufacturing, and as part of this year's State Budget, New York State will make up to $200 million available for the Focused Attraction of Shovel-Ready Tracts New York program. FAST NY is designed to jumpstart New York's shovel-readiness to attract high-tech manufacturing, particularly semiconductor manufacturing, to the state.