Don’t Stall Our Advanced Manufacturing Momentum
Randy Wolken, President & CEO
New York stands at the edge of a historic opportunity.
From semiconductor, biologics, defense, and advanced materials investments to supply chain reshoring, the state is experiencing a once-in-a-generation wave of advanced manufacturing growth. Regions like Central New York are no longer competing for marginal gains; they’re competing on a global stage for transformative, long-term investment.
But moments like this are fragile. Policy decisions made today will determine whether New York accelerates into this future or quietly loses ground to more competitive states.
A recent proposal within the FY 2027 Budget threatens to do just that.
At issue is a technical-sounding change: “decoupling” New York tax policy from recent federal provisions that allow companies to immediately deduct research and development expenses and accelerate depreciation on new production facilities. While the language may appear minor, the implications are anything but. As MACNY has emphasized, this proposal effectively increases the upfront cost of building and expanding manufacturing operations, precisely at the moment when companies are making critical investment decisions.
In advanced manufacturing, timing and capital intensity define success. Facilities require billions in upfront investment, years of planning, and coordinated supply chain development. When a company evaluates where to build, it considers total cost, speed to operation, and long-term returns. If New York increases costs before a facility even begins production, it changes the equation — and not in the state’s favor.
This isn’t theoretical. Investment decisions are highly competitive and often come down to marginal differences between states. A policy that delays cost recovery or raises early-stage expenses can tip a project elsewhere. And when one project moves, the ripple effects follow.
Fewer projects mean fewer construction jobs. Fewer equipment purchases. Fewer opportunities for local contractors, suppliers, and service providers. In advanced manufacturing ecosystems, each major investment anchors dozens, sometimes hundreds, of smaller businesses. When that anchor weakens, the entire network feels it.
But the stakes go even deeper.
Advanced manufacturing isn’t just about factories; it is about ecosystems. It’s about workforce pipelines, innovation partnerships, and regional economic vitality. When investment slows:
- Job creation is delayed or reduced, impacting families and communities
- Local businesses experience reduced demand
- Supply chains become less resilient
- State and local tax revenues from income, sales, and property taxes decline over time
This is the paradox policymakers must confront: short-term revenue strategies that increase upfront costs can ultimately reduce long-term revenue growth. In other words, taxing investment before it produces jobs risks shrinking the very base that drives sustainable fiscal health.
The smarter path is clear: align tax policy with the investment cycle.
States that win in advanced manufacturing understand this principle. They reduce friction at the front end of projects. They create certainty in tax treatment. They signal to investors that capital deployed today will be supported, not penalized, during the most vulnerable phases of development.
New York has already demonstrated its ability to compete. Landmark projects, including semiconductor fabrication and advanced materials manufacturing, show that the state can attract world-class investment. But maintaining that momentum requires consistency. Investors aren’t just evaluating incentives; they’re evaluating trust. Policy unpredictability or cost increases at critical moments introduce risk, and risk pushes capital elsewhere.
This is why MACNY’s call to action is so important. We are urging state leaders to remove the proposed decoupling provisions and ensure that tax policy supports projects already underway. This isn’t about special treatment; it’s about strategic alignment.
Pro-growth policy doesn’t mean foregoing fiscal responsibility. It means recognizing that the timing of taxation matters. Encouraging investment early creates a multiplier effect that expands the tax base over time. It fuels job creation, increases incomes, and strengthens communities. It positions New York not just as a participant in advanced manufacturing, but as a leader.
The opportunity in front of New York is real. The global reconfiguration of supply chains, the rise of advanced technologies, and the push for domestic production have created a window that may not come again soon. States across the country are competing aggressively to capture this moment.
New York must decide: will it lead, or will it hesitate?
The answer lies in policy choices. Supporting investment at the front end, when companies are committing capital, building facilities, and hiring workers is the foundation of long-term growth. Anything that undermines that moment risks slowing progress just as it begins.
In advanced manufacturing, momentum matters. And right now, New York has it.
The task ahead is simple: don’t stall our manufacturing momentum.