ALBANY — Nearly two years ago, computer chipmaker GlobalFoundries lost out on a $220 million tax refund from New York it believed it was entitled to.
But earlier this year, that disappointment was reversed, at least in part, by a special tax tribunal, which awarded GlobalFoundries a $152 million tax refund; the company noted the refund in a recent SEC filing.
The saga began in 2018 when GlobalFoundries, which employs 3,000 people at its Fab 8 campus in Malta, had asked the state to refund $219,684,307 in unused state investment tax credits that it was owed under the state’s Empire Zone program from 2012 and 2014.
The request was somewhat unusual. Under the Empire Zone program, companies like GlobalFoundries that had certified operations in so-called Empire Zones were eligible for a certain amount of tax credits based on how much they spent on a project and other factors. Although the credits can be applied against state tax obligations, any unused portions roll over into future years.
Since breaking ground on Fab 8, GlobalFoundries has spent more than $10 billion, making it eligible for hundreds of millions of dollars in state tax breaks. The state also provided GlobalFoundries with $650 million in cash grants, making the total state incentive package north of $1.4 billion.
The tax credits can be used to offset state taxes, and in some cases half of the unused credits can be turned into a refund if the company qualifies as either a new business — or for building a “qualified” or “significant capital investment” project.
In 2012 and 2014, GlobalFoundries had earned a total of $442 million in such tax credits, viewed under the law as an overpayment, and had applied, and received, a refund of half that amount.
But in 2018, GlobalFoundries amended its tax returns with the state, seeking the other half of the $442 million in remaining tax credits.
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