GlobalFoundries Pushes For More Tax Exemptions
By Dave Lucas
Malta, NY – GlobalFoundries wants additional sales tax exemptions so that ALL of the company's manufacturing equipment, construction costs associated with a new administration building, and 75 million dollarsworth of "facilities, fixtures and equipment" will NOT be subject to state and local sales taxes. Capital District Bureau Chief Dave Lucas reports.
GlobalFoundries has filed a revised application with the Saratoga County Industrial Development Agency that could be worth a total sales tax exemption value of 445 million dollars. GlobalFoundries' attorney sent a letter to the IDA, asking that all of the company's manufacturing equipment be exempt from sales taxes and says that such equipment could ultimately cost up to $5.7 billion.
The IDA has already approved $139 million dollars in exemptions related to the firms' activities at the Luther Forest Technology Campus.
Larry Benton is CEO of the Saratoga County Industrial Development Agency - he explains how the agency is empowered to grant exemptions.
Manufacturing equipment usually gets a state exemption, but individual applications are subject to review. GlobalFoundries officials see the IDA exemption as "an insurance policy in the event the state declines to provide the tax breaks."
Mike Russo is the Director of U-S Government Relations for GlobalFoundries.
GlobalFoundries' sales tax exemptions are in addition to a $1.2 billion incentive package the state is giving the company for deciding to build in Saratoga County.
Mike Russo explains "the good part of the story"
The IDA meets at 8 a.m. Monday at Malta Town Hall to review GlobalFoundries' application. A public hearing must be held before the application can be approved.