Who is Micron?
 

Micron Technology, Inc. engages in the provision of innovative memory and storage solutions. The company was founded by Ward D. Parkinson, Joseph L. Parkinson, Dennis Wilson, and Doug Pitman in October 1978 and is headquartered in Boise, ID. It operates through the following segments: Compute and Networking Business Unit (CNBU); Mobile Business Unit (MBU); Storage Business Unit (SBU); and Embedded Business Unit (EBU). The Compute and Networking Business Unit segment includes memory products sold into cloud server, enterprise, client, graphics, and networking markets. The Mobile Business Unit segment offers memory products sold into smartphone, and other mobile-device markets. The Storage Business Unit segment comprises of SSDs and component-level solutions sold into enterprise and cloud, client, and consumer solid-state drive (SSD) markets, other discrete storage products sold in component and wafer forms to the removable storage markets, and sales of 3D XPoint memory. The Embedded Business Unit segment consists of memory and storage products sold into automotive, industrial, and consumer markets.

 

What are the benefits of this project for NYS residents?

 

Overall, this project represents the opportunity to fundamentally lift up the economy of the Central New York region and beyond while also helping to solve the country’s inflation, national security and supply chain issues.

Specific benefits to New Yorkers will:

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• Create an average annual impact of more than 45,418 jobs at the state level over the time period of 2025-2055, with over 39,000 of those jobs created in the Central New York region. 

• Leverage 5.5 additional indirect jobs in New York State for each direct job created by Micron.

• Create, by 2055, 50,911 jobs at the state level (44,943 of which would be based in Central New York), including 9,005 of the facility’s direct hires and 9,431 indirect and 32,474 induced jobs (indirect and induced: 41,905).

• Grow the state economy significantly, adding an annual average of $16.7 billion in real economic output, and $9.6 billion in real Gross Domestic Product (GDP) over the time period 2025-2055. 

• Add an estimated annual average of $5.4 billion in real disposable personal income for New York residents over the time period 2025-2055.

• Generate an average annual increase of $378.5 million in state government revenue totaling $7.1 billion from 2025-2055 and will generate an average annual increase of $565.5 million in real revenue to local governments, totaling $10.7 billion over the same timeframe.

• Be one of the largest construction projects in North America, with industry spending of approximately $31 billion and 5,600 related jobs at federal/state prevailing wage, for the initial 20 years.

 

Does this project meet the 15:1 Green CHIPS Benefit-Cost Ratio requirement?

 

Yes. In total, the Green CHIPS benefit-cost ratio is estimated at 20 to 1 ratio of company spending to State Green CHIPS incentives. This means that the company will be spending at least $20 for every $1 of Green CHIPS tax credits or grants that it receives.

 

How is the Green CHIPS Benefit-Cost Ratio calculated?

 

$ sum of company spending on net new jobs + capital investment + R&D
    $ sum of Green CHIPS tax credits + any direct company grants

 

What are the roles of the different offices and government agencies involved?

 

At the federal level:

• The U.S. Department of Commerce is responsible for administering federal CHIPS and Science Act grants under the federal legislation.
   

At the State level:

• all terms of its agreement with the State for the Green CHIPS and other benefits.ESD’s role in the project will be to administer the economic incentives and ensure that Micron meets

• NYSERDA is providing technical assistance to ESD with respect to designing and implementing the Green CHIPS sustainability requirements.

• NYPA will be providing low-cost hydropower to Micron.

• NYSDOT will be providing certain roadway improvements to support the project and mitigate the impacts of traffic in the area.

 

In Onondaga County:

• Onondaga County Industrial Development Agency (OCIDA) possesses control of the White Pine site that will feature the project and will convey a payment-in-lieu-of-taxes (PILOT) with respect to Micron’s property tax obligations and a sales tax exemption with respect to project construction.

• Onondaga County also has a financial commitment to the project including infrastructure upgrades for sewer and water services, a façade grant and certain site development improvements.

 

Will ESD or Onondaga County be required to use eminent domain to enable the project?

 

No. ESD’s understanding, per Onondaga County, is that Onondaga County Industrial Development Agency already possesses all land ownership or purchase options necessary to enable the project.

 

What makes Micron “green” specifically? 

 

As a condition of its incentives, Micron will reduce its GHG emissions in New York State to a level lower than any other of its current plants, offsetting their impact on climate change, based on a Clean Energy and Sustainability Action Plan that will be approved by ESD in consultation with NYSERDA. For a detailed description of the Sustainability Commitments, click here.

 

How will ESD ensure projects include "sustainability measures to mitigate Micron’s GHG emissions impact over its lifetime?"

 

Please see draft regulations here.

 

Micron will be required to submit a Green CHIPS Sustainability Plan that will be approved by ESD in consultation with NYSERDA and will be required to submit an annual report detailing their adherence to the plan. Meeting the sustainability plan standards and fulfilling its milestones would be a condition of receiving Excelsior tax credits at the Green CHIPS rate.

 

How will ESD ensure that Micron will pay not less than federal prevailing wage for project construction?

 

As it relates to Micron, Green CHIPS requires that all construction wages paid during the project will be no less than federal prevailing wage rates, as published by the U.S. Department of Labor, for the duration over which Micron receives its Green CHIPS tax benefits. ESD will require companies annually certify their compliance with this requirement.

 

Importantly, payment of federal prevailing wage is also a requirement of the federal CHIPS grants, and we expect the U.S. Department of Labor to enforce this requirement in part under that assistance.

 

What will be the penalties if Micron doesn’t meet their commitments?

 

All incentives offered to Micron come from the State’s pay-for-performance Excelsior Green CHIPS Program. This means that the Company will only receive Green CHIIPS tax credits when it meets its commitment to the State.

 

Specifically, under Green CHIPS, Micron will be required to meet its job and investment commitments, workforce and community benefits, and sustainability commitments to receive its incentives.

 

What happens if a company meets some but not all of their Green CHIPS project requirements? 

 

To receive their full Green CHIPS benefits, companies will need to fully meet their commitments in all areas – jobs and investment, workforce training, community partnerships, prevailing wage and environmental sustainability; each is required.

Failure to comply with all of these requirements result in the company’s inability to receive Excelsior tax credits at the enhanced Green CHIPS rate.

 

Why will Micron receive a second term of benefits if it undertakes an additional phase of development? 

 

Under Green CHIPS, a company is allowed to earn up to two 10-year project benefit terms.

 

To qualify for a second term, Micron will need to create at least 500 net new jobs (i.e., at least 1,000 net new jobs total) and invest at least $3 billion (i.e., at least $6 billion total) per phase.

 

Importantly, benefits under any second phase would only be applicable to investment and job creation above and beyond the company’s Phase 1 commitments – i.e., no double-dipping on benefits for the same jobs and investments. 

 

Does a 20-year benefit period mean that the company could get job credits for up to 20 years?

 

No. Credits associated with jobs will only be available for 10 years

 

Is a phase 1 "job" eligible for credits for 10 years or does credit eligibility end when phase 1 ends?

 

Benefits under any second phase would only be applicable to investment and job creation above and beyond the company’s Phase 1 commitments – i.e., no double-dipping on benefits for the same jobs and investments.

 

Will the project be subject to M/WBE goals?

 

Micron’s Green CHIPS tax credits are not subject to MWBE goals under State law, which is in line with the current Excelsior program. However, as part of the Community Investment Framework between Micron and ESD, Micron has committed to good faith efforts to achieve 30% of eligible construction and 20% of its eligible annual operating spend with diverse suppliers (defined as SEDI entities [Socially and Economically Disadvantaged Individuals], with priority given to NYS Certified M/WBEs and SDVOBs).

 

How did New York State estimate the economic and fiscal benefits from Micron?

 

To analyze the economic and fiscal benefits of the project, ESD contracted with a third party, Regional Economic Models, Inc. (REMI).

 

ESD provided REMI with the project specifications provided by Micron as part of what would be their job and investment commitments, and REMI used a New York State-specific Tax/Personal Income model to analyze the resulting indirect and induced job creation, economic benefits, and fiscal benefits from the project. To view the complete economic impact study by REMI, Inc. click here. 

 

Who is REMI, Inc.?

 

From REMI: Regional Economic Models, Inc. (REMI) is an independent company with offices in Amherst, MA and Washington, D.C. that provides non-partisan economic analysis and modeling software to its clients, who include federal, state, and local government agencies, non-profit organizations, universities, and private companies. With approximately 40 years of experience, REMI is a worldwide leader in providing dynamic regional U.S. macroeconomic and demographic models used to evaluate economic development as well as many other policy issues such as taxes, health care, transportation, energy and the environment, and trade. REMI consultative services and modeling software have been utilized on a number of economic development studies in New York, in addition to other semiconductor manufacturing facilities.