With over $124 billion in new chip industry investments announced since 2022, New York is home to the fastest growing semiconductor industry ecosystem in the U.S. This rapid expansion is powered by New York’s strategic leadership in semiconductor R&D, where sustained investment serves as the critical driver for technological breakthroughs.

New York is home to NY Creates’ Albany NanoTech Complex, the largest and most advanced semiconductor facility of its kind in North America; the nation’s largest public higher education system, the State University of New York (SUNY) system; the third most Tier-1 Research Institutions in the country; and the most resident scientists and engineers in the Northeast. Under Governor Hochul’s leadership, New York is doubling down on its R&D advantages with a $10 billion investment to build the nation’s first and only High NA EUV Lithography R&D Center at Albany NanoTech.

The Semiconductor R&D Tax Credit invites forward-thinking semiconductor and supply chain companies to enter this thriving landscape. By incentivizing the establishment of dedicated, large-scale physical R&D facilities, this program aims to ensure that New York remains the premier destination for semiconductor innovation that will define the future of global computing.

Participants in the program are eligible for a high-impact, refundable tax credit to offset the costs of significant semiconductor R&D investments. Businesses claim the credits over a benefit period of up to 10 years as established in the preliminary schedule of benefits. 

The benefits that businesses may claim are outlined below:

• A credit of up to 15% of the cost (or federal tax basis) of a qualified investment.
• Benefits can be claimed for the first taxable year a certificate is issued and for up to ten consecutive years in total.

Note: Participants may not claim this credit alongside the Excelsior Investment Tax Credit or other specific investment tax credits for the same property or activity.

Applicants must operate predominantly in the semiconductor or semiconductor supply chain industry sector and meet the following criteria:

• The project must be for a physical R&D facility separate and distinct from any manufacturing operations.
• The project must incur at least $100 million in qualified investment within New York State.
• Tangible property must have a useful life of four years or more, be depreciable under IRS Section 167, and be placed in service in NYS on or after the date the certificate of eligibility is issued.
• Applicants must be in substantial compliance with all worker protection, environmental, and tax laws.
• Not-for-profit business entities are not eligible for this program.

Current Semiconductor R&D Program Regulations

Businesses interested in the Semiconductor R&D Tax Credit Program must complete this brief form to be reviewed by the GO-SEMI team before submitting a full application.