$387M in tax exemptions OK'd for $16.8B GlobalFoundries projects
MALTA — GlobalFoundries will receive about $387 million in sales tax exemptions as incentives to locate a technology research center and a second computer chip factory at its Fab 8 site in Luther Forest.
The Saratoga County Industrial Development Agency today approved tax exemptions for both projects, which between them are expected to involve a $16.8 billion investment by GlobalFoundries.
The company plans to break ground on its $2.1 billion Technology Development Center this spring, while it hasn't yet made a commitment to follow through on the $14.7 billion Fab. 8.2.
Between them, it is estimated 3,000 new permanent jobs would be created, on top of the 2,000 jobs at GlobalFoundries' first plant.
The vote on granting exemptions for both projects was 5-1, with IDA board member Charles Hanehan opposing both of them.
Hanehan has a consistent record of opposing tax breaks for GlobalFoundries, which also received millions in tax breaks for the first factory at Fab 8, which began operations last year.
"I'm just not sufficiently convinced this will make a difference whether the project goes forward or not," Hanehan said.
GlobalFoundries spokesman Travis Bullard said tax breaks like these — and the $1.3 billion the state offered to first lure the chip manufacturer to the state in 2006 — are essential.
"These are always important," he said after the vote. "We compete in a global industry, and our competitions get the same kinds of incentives where they operate. These incentives are critically important."
The agreements approved include a sales tax break worth an estimated $134 million on building materials and manufacturing equipment at the Technology Development Center, and an estimated $252 million in exemptions for Fab 8.2.