How the State Budget Made Key Investments to Support Tech Hub Efforts
The Partnership
May 21, 2025
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New York State lawmakers recently approved the FY2026 state budget. The agreement included several key wins for the semiconductor industry, building upon the state’s demonstrated support for the NY SMART I-Corridor.
These include:
- Supply Chain Incentives: The Excelsior Jobs Program will be expanded by creating an enhanced tier for semiconductor supply chain job creation. This program covers a portion of wages for employers who commit to certain job creation targets.
- R&D Incentives: For semiconductor research and development projects over $100m, the state will provide a 15% credit.
- Workforce Training: The state will cover up to 75% of wage, training, and wraparound service costs for semiconductor-related workforce development initiatives. The credit will cover up to $25,000 per employee, and up to $5 million per business.
- Site Development: To assist semiconductor manufacturers in locating in the SMART I-Corridor, the state is continuing to invest its FAST NY Shovel-Ready Grant Program. Additionally, the state is investing $300m in the POWER UP program, which will help build infrastructure to bring high electric loads to new sites.
These investments are consistent with the goals of our Tech Hub initiatives. By working with governmental leaders to remove barriers to business, the NY
SMART I-Corridor is becoming a prime location for semiconductor manufacturers, suppliers, and users to call home.
In addition to the semiconductor-specific support, the New York business community was pleased to earn a number of significant policy wins in this budget process that will improve the economic climate for employers of all sorts. By investing in higher educational institutions, making childcare more accessible, eliminating unnecessary employer costs and liabilities, and preserving energy reliability, New York is a better place to do business.
The Corridor thanks Governor Kathy Hochul and the State Legislature for their unwavering support of this initiative.
To follow ongoing progress and opportunities across the Corridor, visit nysmarticorridor.com.
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