What's happening
This bill lowers the job creation requirement for Green CHIPS projects from 500 to 250 jobs or $3 billion investment to qualify for incentives.
Why it matters
Expands eligibility for incentives to smaller projects. , making it easier for companies that can't meet the previous 500-job threshold to qualify, which could accelerate growth across more regions and benefit mid-sized employers.
Introduces a choice between job creation and investment. , allowing companies to qualify by either creating 250 jobs or investing $3 billion, rather than requiring both—potentially attracting high-tech, capital-intensive projects that may use more automation and employ fewer people.
Could increase competition for state incentives. , as more firms are now eligible, which may prompt a broader range of semiconductor and supply chain companies to consider New York for expansion or relocation.
May result in a wider distribution of economic impacts. , as incentives become accessible to a broader set of communities and businesses, potentially fostering innovation, supply chain resilience, and workforce development in more diverse areas.
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Who cares
Headline styles
Lower Bar for Green CHIPS
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to commerce, economic development and small business
- Referred to commerce, economic development and small business
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
582
2025-2026 Regular Sessions
IN SENATE (Prefiled)
January 8, 2025
Introduced by Sen. HELMING -- read twice and ordered printed, and when printed to be committed to the Committee on Commerce, Economic Development and Small Business
AN ACT to amend the economic development law, in relation to green CHIPS projects
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 24 of section 352 of the economic development law, as added by chapter 494 of the laws of 2022, is amended to read as follows:
24. "Green CHIPS project" means a project meeting all of the following criteria: (a) is within the semiconductor manufacturing and related equipment and material supplier sector; (b) includes sustainability measures to mitigate the project's greenhouse gas emissions impact over its lifetime; (c) provides for the payment of not less than federal prevailing wage rates for its project construction; (d) makes commitments to worker and community investment, including through training and education benefits paid by the participant and programs to expand employment opportunity for economically disadvantaged individuals; (e) will create at least [five] two hundred fifty net new jobs [and] or make at least three billion dollars in qualified investment; and (f) the participant undertaking a Green CHIPS project shall maintain a Green CHIPS benefit-cost ratio of at least fifteen to one. Such projects are eligible to enter into a phase one of a Green CHIPS project ten-year benefit term. Such projects, provided they are in good standing with all requirements of this chapter, are also eligible to enter into a phase two of a Green CHIPS project, and therefore to initiate a new and separate ten-year schedule related to phase two, provided that phase two will create at least [five] two hundred fifty net new jobs beyond those created in phase one, [and] or that phase two will make at least three
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01328-01-5
billion dollars in qualified investment beyond the investment total associated with phase one. For Green CHIPS projects, phase one and phase two terms may overlap, depending on the time of initiation for both projects. In no event shall credits be awarded for a Green CHIPS project beyond two thousand fifty.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.