Testimony: No to Micron Getting $880m in New Onondaga County Sales Tax Breaks

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

1. Micron made $8.54 billion in net profit on sales of $37 billion in its 2025 fiscal year. 
2. Micron (and OCIDA) do not state anywhere how many full-time jobs will be held by Onondaga County residents. 
3. 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 

Request for inclusion in the public record

Reinvent Albany submits this testimony for inclusion in the public record of the public hearing held November 6, 2025 by the Onondaga County Industrial Development Agency pursuant to Section 859-a of the New York General Municipal Law. 

Thank you, 

John Kaehny 
Executive Director, Reinvent Albany 
info@reinventalbany.org, 917-388-9087
www.reinventalbany.org 

Reinvent Albany is a 501c3 non-profit organization that advocates for transparent and accountable New York government. Among the areas we focus on are government subsidies to corporations, such as the Onondaga IDA’s proposed tax breaks for Micron. Over the last decade and a half, Reinvent Albany has been cited over 2,000 times by journalists at the New York Times, Wall Street Journal, the Economist, Gannett, Albany Times-Union, Buffalo News, Newsday and Syracuse Post-Standard. Our staff analysts and policy fellows are considered experts on New York fiscal and policy questions and we have testified before the NYS Senate and NYS Assembly numerous times on tax and corporate subsidy issues. 

Sources

• Initial application adopted by OCIDA Feb 15, 2024
• 10/21/2025 Amendment Micron New York Semiconductor Manufacturing LLC (3101-23-07A)
• Exhibit E projected employment growth (pages 34-35 in PDF)

Click here to view the testimony as a PDF.