Schumer asks feds to speed up investment tax credits essential for Micron project

When implemented, semiconductor manufacturers will be able to claim a 25% federal tax credit on the cost of construction and equipment purchases for new chip fabrication plants, or fabs.

The CHIPS and Science Act pushed through Congress by Schumer, the Senate majority leader, set aside $24 billion for the investment tax credits.

The tax credits are in addition to $52 billion included in the bill as incentives for chipmakers to build new plants in the United States and open new domestic research facilities.

Next week, the U.S. Department of Commerce is expected to open the application process for companies, including Micron, to compete for $39 billion in federal grants for building new plants in the United States.

Schumer, D-N.Y., said Friday that it’s important for the investment tax credit program, run by the Treasury Department, to be on a parallel fast track so that companies can start building and equipping the new plants.

In a letter to Treasury Secretary Janet Yellen, Schumer noted the Micron and other manufacturers who announced U.S. expansions need to know soon exactly how they would qualify for the tax credits and the guidelines for the program.

“Companies are eager to make investments and move forward on game-changing projects across the country, but they want the certainty that the incentives are accessible,” Schumer wrote in the letter provided to syracuse.com | The Post-Standard.

“In New York state alone, Micron has announced an historic $100 billion investment to build a cutting-edge memory fab in Central New York—a project that will require the ITC (investment tax credit) to be successful,” Schumer wrote.

The 25% tax credit would give the companies incentives to make major investments in the construction of new plants, the purchase of new manufacturing equipment and specialized tooling equipment.

There would be no dollar cap on the amount of investment tax credits a company could claim for their purchases.

Schumer said last year that Micron would not have considered building a massive complex of computer chip plants at White Pine Commerce Park in Clay without the tax credit.

“Micron was very clear they couldn’t invest in the United States, let alone Syracuse, without the chips incentive and the investment tax credit together,” Schumer said.

Under the federal incentive program that will be unveiled next week, chip manufacturers will be eligible for grants of up to $3 billion per company as an incentive for opening new plants in the United States.

Micron said in October that it had reached a deal with New York and Onondaga County officials on a separate incentive package to locate the new manufacturing complex at White Pine Commerce Park in Clay.

Micron said its investment could bring 50,000 jobs to Upstate New York over the next 20 years, including 9,000 jobs at its plant in Clay.