Updated 03/18/2013 04:32 PM
Saratoga County IDA approves $400 million tax break for GlobalFoundries
In a 2006 deal to lure the company to the Capital Region, New York State and Saratoga County leaders offered AMD, which later gave way to GlobalFoundries, more than $1 billion in tax breaks and incentives. As YNN's Matt Hunter reports, on Monday, the company received additional tax exemptions that amount to close to $400 million.
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MALTA, N.Y. – Following two separate public hearings Monday, the Saratoga County Industrial Development Agency voted to extend an additional $400 million in sales tax exemptions to GlobalFoundries, the company building a massive $8 billion chip plant in Malta's Luther Forest Technology Park.
"This is an investment that will be returned for Saratoga County and not only Saratoga County, but the whole area for years to come," said Ray Callahan, chairman of the Saratoga County IDA.
GlobalFoundries, which already employs roughly 2,000 people locally, submitted two separate applications for the tax breaks. The first was for its already approved Technology and Development Center, which will employ an additional 1,000 people. The other application was for a second manufacturing facility, known as Fab 8.2, which company executives are still considering whether to build.
"There's lots of different factors that go into it, but this [incentives] is certainly one of the elements we have to consider," said GlobalFoundries spokesperson Travis Bullard.
According to Saratoga County Chamber President Todd Shimkus, the county's total payroll has risen by more than eight percent since GlobalFoundries began operations in 2010. Prior to the vote, he urged the IDA board to approve both applications.
"We have to realize that Saratoga County is competing for this investment, for 8.2,” Shimkus said. “We're competing with Germany, we're competing with Abu Dhabi, we're competing with Singapore."
Monday's lone "no" vote came from Charles Hanehan, who believes the incentives are not essential for GlobalFoundries to expand the project.
Even on top of the $1.4 billion the company has already received from the state, others clearly believe the tax breaks are a small price to pay for the potential economic return.
"I think it's the old story of 'If you're not growing, you're dying,'” IDA member Richard Dunn said following the vote. “This is really about real growth."
"The economic impact is really exponential and we've got to do everything we can to make sure Saratoga County is the place GlobalFoundries chooses to build [Fab] 8.2," Shimkus said.