Local Sales Tax Break

November 7, 2025

Today, Micron said it would delay the opening of its first chip fab in Onondaga County until late 2030.

Yesterday, November 6, the Onondaga County Industrial Development Agency (OCIDA) heard public comments on Micron’s request for an additional $1.7 billion in sales tax abatements, including $880 million in Onondaga County sales tax breaks – money that would otherwise go to area schools, parks, roads, and police and fire service. Micron is already on track to get as much as $25 billion from federal, state, and Onondaga County taxpayers for the Syracuse area Fabs. The OCIDA board will vote on the additional sales tax abatements and an additional $284 million in property tax abatements on November 17th.

Reinvent Albany submitted the testimony below to the OCIDA:

We oppose Micron’s request to the Onondaga County IDA (OCIDA) for an additional $1.76 billion in state and local subsidies on top of the more than $21.4 billion in government subsidies it is already receiving (page 10 of the application). While it does not say so in the application, Micron is functionally asking for $880 million in Onondaga tax abatements, plus $880 million in NYS tax abatements because state and local sales taxes are half each of the total sales tax.

We believe it is economically irrational and fiscally irresponsible for the Onondaga County IDA to exempt Micron from $880 million in county sales taxes that would otherwise pay for the schools, roads, clean water, parks, and police and fire protection used by Micron and its employees. Micron is constructing chip fabs in Onondaga in part because it is already guaranteed $21.4 billion in government subsidies, including at least $2.24 billion in state Green Chip subsidies. Micron is here whether or not it gets this additional handout from Onondaga taxpayers and it is simply not credible to assert Micron will not build in Onondaga if it does not get this additional sales tax break.

Therefore, what is Micron’s or the Onondaga County IDA’s argument for giving Micron another $880 million in subsidies from Onondaga County?

Also, neither Micron nor OCIDA state in any of their documents how many full-time jobs will go to residents of Onondaga County. Instead, on page 8, Section B of the Initial Application, Micron estimates it will ultimately provide 1,301 full-time jobs to residents of the “Economic Development Region” consisting of Onondaga, Madison, Cayuga, Oneida, Oswego, and Courtland Counties.

We would like to know why Onondaga County is providing all of the local subsidies, but does not even know how many of its residents will be getting Micron jobs. Before OCIDA votes to approve more subsidies, it should answer this question and explain why the level of subsidies it is providing are warranted.

Important Facts

Micron made $8.54 billion in net profit on sales of $37 billion in its 2025 fiscal year.
Micron (and OCIDA) do not state anywhere how many full-time jobs will be held by Onondaga County residents.
New York State is already guaranteeing subsidies of $5.5 billion to Micron for Fabs 1 and 2 in Onondaga.

Current Government Subsidies for Fabs 1 and Fab 2 in Onondaga
$4.6 billion Federal CHIPS Act
$11.3 billion federal Investment Tax Credit
$5.5 New York State Green CHIPS
$21.4 billion total

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