American Economic Liberties Project: New York tax dollars aid Corning expansion, but was it 'going somewhere else?'

A New York-based technology company plans to spend nearly $140 million to expand its footprint upstate and help boost the production of semiconductors, and while the state is providing some tax credits toward the project, at least one organization questions whether that’s a prudent investment.

Corning Incorporated made the announcement Friday at a press conference in Fairport that included Democrats Gov. Kathy Hochul and U.S. Sen. Chuck Schumer.

Its project covers two sites near Rochester. Corning plans to grow its administrative and manufacturing facility in Fairport, a village roughly 10 miles east of Rochester. That expansion, which the company says will create more than 270 jobs, is targeted for completion in 2024 and includes a new engineering center.

In Gates, located on the other side of Rochester, a new laser optics production facility is expected to open next year.

Corning’s expansion project is the latest to include state tax incentives, a practice that has drawn questions from some state lawmakers and groups like the American Economic Liberties Project. In late March, the nonprofit advocacy organization released a report highlighting “The Dirtiest Dozen” economic development deals the state has made.

Pat Garofalo, the Director of State and Local policy for the organization, told The Center Square on Friday that the state has a track record of “throwing tons of money” at companies that either failed completely or did not produce the investment or jobs promised.

While the Corning deal isn’t major in that it doesn't involve a massive incentive, it’s still the type of incentive that needs more scrutiny.

“It looks like a kind of classic case of paying a corporation to do what it was going to do anyway,” he said. “Was there any indication that Corning was going to go somewhere else? Was threatening to leave? Wasn’t going to do this expansion without the money? Governor Hochul says in her own press release that this is a booming industry with lots of domestic demand. So I just don’t see the case for needing to do this for this specific corporation at this specific time.”

“Semiconductors are fundamental to virtually all technology we interact with today – from smartphones to cars to household appliances,” Corning Chairman and CEO Wendell Weeks said in a statement. “Corning has helped advance the semiconductor industry for more than 50 years, and our expansion will continue to keep us well-positioned to support nearly every step of the chip manufacturing process as we respond to growing customer demand.”

The state, Monroe County and Greater Rochester Enterprise – the local economic development agency – are all “assisting” with the $139 million project, according to a release from the Hochul administration.

New York’s share comes from Empire State Development, the state economic development agency. It has offered $5 million in Excelsior Jobs Tax Credits, which Corning will receive for meeting certain job and investment targets.