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

August 11, 2022

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 Link opens in new window - close new window to return to this page., as well as in Quarterly Excelsior Jobs Tax Credit Program reports.

State Senator Jeremy Cooney said, "If you want to transform upstate New York, we need jobs to attract and retain the next generation of workforce talent. Green CHIPS projects will transform economies across the thruway corridor by bringing quality, high-paying jobs to communities looking for workforce investment. By leveraging federal dollars, our state legislation will position New York to be a global leader in the growing field of semiconductor manufacturing. I'm grateful to Governor Hochul and our federal representatives for their leadership and look forward to the new job opportunities coming to New York State."

Assemblymember Albert A. Stirpe Jr. said, "My top priority is creating a better economic future for our state, that starts with backing legislation that expands job opportunities and supports the industries hardest hit by the pandemic and ongoing supply chain shortages. The last few weeks of session I worked tirelessly to ensure the Green CHIPS bill provided financial incentives that benefited local families and businesses as well as semiconductor manufacturers. With shovel-ready sites like White Pine right here in Central New York, this legislation would be an investment in our community's development and help make our region and state a leader in semiconductor manufacturing."

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.

Additionally, the Governor has committed over $350 million through the State Budget to support wide-reaching, historic and coordinated investment in workforce development across state agencies and authorities. The New York State Office of Strategic Workforce Development at Empire State Development will leverage ESD's relationships with employers to help identify employer needs, develop tailored regional training strategies, and support programs to train New Yorkers in the skills necessary to succeed in in-demand fields, such as semiconductor and advanced manufacturing.

Senator Charles E. Schumer said, "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. 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."

Representative Paul Tonko said, "I'm thrilled to celebrate the signing today of New York's landmark Green CHIPS legislation. The up to $10 billion in incentives for environmentally friendly semiconductor manufacturing here in our state will combine with our federal CHIPS and Science Act to provide a major boost to the emerging chip manufacturing industry in our Capital Region. Investments like these help lower costs for American families, strengthen our domestic supply chains, create good paying jobs, and help build out our growing STEM workforce. I'm proud to spearhead these efforts in the House that deliver for our communities and ensure our state is a global leader in chip manufacturing, and I look forward to continuing to work alongside Governor Hochul to drive investment and innovation in this fast-growing industry."

Empire State Development President, CEO, and Commissioner Hope Knight said, "Green CHIPS will help attract 21st century jobs and much needed investments in regions of the state that have suffered from the loss of traditional manufacturing. This historic and groundbreaking legislation will ensure that New York State is not only attracting an industry that is crucial to our economy, but also bringing companies who want become part of the fabric of our communities and strive to make a difference."

New York State Energy Research and Development Authority President and CEO Doreen M. Harris said, "Semiconductors play a major role in the New York's green energy transition by serving as primary components for clean technologies and improving existing resource efficiencies. Thanks to Governor Hochul's leadership, this first in the nation legislation will ensure this manufacturing industry makes its home here in New York while serving as an example for how green chip production projects can help to lower emissions, promote sustainability, and foster job creation and economic growth across the state."

New York State Department of Labor Commissioner Roberta Reardon said, "Governor Hochul's economic vision continues to bring significant investment and unprecedented opportunity to New York State. This funding will spur growth in our advanced manufacturing sector, support the State's sustainability efforts and empower New Yorkers to get the training they need to earn family-sustaining wages in careers that they will love."

New York Power Authority Interim President and CEO Justin E. Driscoll said, "The New York Power Authority has long taken pride in serving as the backbone of economic development for New York State, leveraging the state's low-cost hydropower for job growth and capital investments. The Governor's new Green CHIPS legislation further enhances the Power Authority's ability to attract innovative businesses to New York so that together we can build a thriving, resilient clean energy economy."

SUNY Interim Chancellor Deborah F. Stanley said, "SUNY stands ready to continue to educate and train the semiconductor industry leaders, researchers, and manufacturers of tomorrow. With strong state and federal support through the NY Green CHIPS legislation and the recently signed CHIPS and Science Act, we are excited to be part of the growing chips manufacturing landscape in New York State. The Albany Nanotech Complex has brought together public and private partnerships, and through significant New York State investment it has a state-of-the-art facility to draw in key collaborators across higher education and business. We thank Governor Hochul for her continued dedication not just to SUNY and higher education, but to a sustainable future for all New Yorkers."

NY CREATES President David Anderson said, "The Green Chips legislation is a historic investment in our future and makes clear to the rest of the country that New York is ready to lead America's semiconductor resurgence. With the Albany Nanotech Complex here and growing, a thriving industry ecosystem, and strategic business incentives, New York is in prime position to attract private investment and new jobs. We commend Governor Hochul, Senator Cooney and Assemblyman Stirpe for their vision and commitment to generating new economic opportunities for New Yorkers."

President and CEO of The Business Council of New York State Heather Briccetti Mulligan said, "The pandemic proved just how vital the semiconductor industry is to our economy and how critical it is for the US to be less dependent on other countries for production. This is a welcome boost to build this robust industry in New York State and I applaud Governor Hochul and the Legislature for enacting this nation leading program."

New York State Economic Development Council Executive Director Ryan Silva said, "This is a historic day for New York and the U.S. The Green CHIPS Act is the most aggressive investment program in the U.S. Green CHIPS will accelerate the growth of the semiconductor industry and supply chain in New York, attracting billions in new investment and creating good-paying jobs and economic opportunity for generations of New Yorkers. We applaud Governor Hochul, Senator Cooney, and Assemblyman Stirpe for their bold investment in our collective future."

GlobalFoundries President and CEO Dr. Thomas Caulfield said, "A new chapter of American chip manufacturing is underway, and the U.S. semiconductor industry is better positioned than ever before to compete globally. The historic CHIPS and Science Act, bolstered by Governor Hochul's visionary Green CHIPS Legislation, will catalyze a surge of semiconductor manufacturing and innovation across New York State and the nation. GlobalFoundries thanks Governor Hochul for her leadership and stands ready to take action and deliver on the promise of this incredible moment for U.S. chipmakers."