BILL NUMBER: S582
SPONSOR: HELMING
 
TITLE OF BILL:
An act to amend the economic development law, in relation to green CHIPS
projects
 
PURPOSE:
This legislation would expand eligibility to semiconductor manufacturers
and related supply chain projects with smaller-scale employment.
 
SUMMARY OF PROVISIONS:
Sections 1: Amends the economic development law to revise requirements
for eligibility as a green CHIPS project to a net employment of 250 jobs
or an investment threshold of $3 billion over the term of the project
Section 2: Provides the effective date.
 
JUSTIFICATION:
In 2022, New York enacted Green CHIPS legislation designed to prioritize
the economic importance of the semiconductor industry in New York State.
Semiconductors and their manufacturing components play an important role
in technological innovations that impact products and services other
industries, and people, rely on every day. The semiconductor industry
and related supply chain is vital to the New York economy and the nation
as a whole. As such, New York enacted Green CHIPS incentives to boost
its competitive status as a national leader in semiconductor manufactur-
ing and jobs.
Unfortunately, the Green CHIPS incentives included exclusionary thresh-
olds that may deter some companies from entering and expanding their
industrial footprints in New York, particularly in smaller communities.
To address these barriers, this legislation lowers the threshold of net
jobs and revises the necessary investment that makes a company eligible
for Green CHIPS incentives. By amending these requirements, New York can
be more readily attractive to potential investors, leading to high-tech
and high-paying jobs. Further, these incentives can encourage the
restoring of manufacturing to New York State and the U.S. These jobs are
especially critical for upstate communities that have been challenged by
out-migration and the shuttering of industrial facilities. Opening the
Green CHIPS program to companies seeking to expand their operations and
grow jobs in New York's smaller and rural communities has the potential
to greatly impact those communities and all of the state.
 
LEGISLATIVE HISTORY:
2023-2024: S.6049 referred to Commerce, Economic Development, and Small
Business
 
FISCAL IMPLICATIONS:
Undetermined.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S582: 352 economic development law, 352(24) economic development law