Albany at Its Worst: We Oppose $10 Billion Tax Break for “Green” Chip Fabs Introduced in Last Days of Session

Reinvent Albany strongly opposes S9467 / A10507, which would provide up to $500 million a year in tax abatements to chip manufacturers totaling up to $10 billion over twenty years.

We are extremely disappointed that the State Senate fast-tracked what appears to be a potentially massive new corporate subsidy with no opportunity for public discussion or debate, no fact-based analysis and no independent assessment. 

We hope the State Assembly rejects this mammoth new corporate tax break and instead holds public hearings assessing the pros and cons of this enormous investment of state funds.

We note the following about the Green CHIPS bill:

1. The state tax breaks take effect immediately and are not contingent on federal subsidies.
    
2. There is zero guarantee that the federal government will reimburse the taxpayers of New York State for the up to $10 billion they give chip fabs, and there is no reason to think that they will.
    
3. Most or all new or upgraded chip fabs will be eligible for state tax breaks given the bill’s broad, vague definition of “Green CHIPS.” All new chip fabs seek to use less energy in manufacturing and seek to produce chips that use less energy.