Green CHIPS legislation wields economic punch for NYS

ALBANY | Gov. Kathy Hochul has signed 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 (aka "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 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, signed into law by President Biden Aug. 9. New York's Green CHIPS bill will help the state 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," Gov. Hochul said in an Aug. 11th news release. "This transformative legislation . . . takes a significant step forward in creating jobs and sparking economic growth in New York." 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 the country at a strategic disadvantage in several critical areas, including national security, technological innovation, and economic growth and independence. Green CHIPS ensures: At least 500 new jobs and at least $3B 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 $3B 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. 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. 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.

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Green CHIPS legislation wields economic punch for NYS

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