Micron seeks estimated $284M in tax breaks for Clay chip fab – Spectrum News
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Micron Technology Inc. formally applied to the Onondaga County Industrial Development Agency this week for an estimated $284 million in property tax breaks over 49 years to build its $100 billion semiconductor plant in Clay.
The paperwork submitted moves it closer to confirming a PILOT plan, or payment in lieu of taxes, in which the company would pay an estimated $84,501,999, with a projected tax savings of $283,882,226, according to a Draft Pilot Payment Schedule released in 2021.
Final PILOT numbers are still to be negotiated.
Also, the Onondaga County IDA was named the lead agency on the project, a critical step for getting it to the finish line.
Onondaga County Executive Ryan McMahon outlined the next steps of what’s expected to be a major economic driver for the state. For the past nine months, Micron’s arrival in upstate New York has been highly anticipated and often debated. Skeptics wonder if the $100 billion investment is too good to be true.
“Today is about Micron making an IDA application where they’re asking the county to be the lead agency so we can finish up the environmental reviews, so they can start construction," said McMahon. “It’s an important part of the process because to do the environmental reviews and finish that up so you can start construction, you need to be declared a lead agency."
According to the county executive, there will be a $25 million payment from Micron to the County IDA.
“Which will cover all the County IDA’s costs, getting the site ready, but also paying for our staff over the next few years and give the County IDA money to do other economic development activities as well," said McMahon.
Compared to the proposed 49-year PILOT, the Carousel Mall tax deal was 30 years. It was one piece of an incentive package that helped make Micron choose New York over other states to build its new facility.
“It’s go time, right? We finish up our environmental reviews so we can start clearing the site, so we can start building a fab. Then, we can start hiring full-time Micron employees," said McMahon.
There will be at least 4,500 new construction jobs for two years. Salaries of full-time employees at Micron could range from $68,000 for technicians to $166,000 for management and executives.
“The community’s going to see this boom in 2024, and its going to be something that we just have not seen before," said McMahon.
Documents also say a general contractor has not been chosen yet for the project, but will be coming from the Central New York area.
An early statement regarding the environmental review of Micron’s plans indicates "the proposed action has the potential to result in significant adverse impacts on the environment, including but not limited to impacts related to transportation, natural resources, air quality, and construction and construction related impacts."
An Onondaga County IDA meeting scheduled for Thursday will include a presentation from Micron. More on that as it happens.