Corning Inc. will get a federal tax credit worth $30 million for the expansion of its heavy duty diesel plant in Erwin.
The tax credit supports investment in manufacturing facilities that produce clean-energy technologies, said U.S. Sen. Chuck Schumer, D-N.Y.
It comes from the U.S. Department of Energy and Department of Treasury under Section 48C of the tax code, known as the Advanced Energy Credit for Manufacturers, according to Schumer.
Construction is underway on a 94,000-square-foot expansion of Corning Inc.'s heavy duty diesel plant on State Route 417, just off U.S. Route 15 at the Addison exit. The expansion was formally announced in late April, and construction began immediately.
The plant makes large ceramic substrates and filters for catalytic converters, which cut emissions from heavy-duty diesel engines used in trucks as well as construction and agricultural equipment.
Schumer noted that the products made at the Erwin plant benefit the environment and human health by cutting black carbon emissions, which accelerate climate change and worsen air quality. He says he pushed last year on Corning Inc.'s behalf for the Section 48C tax credit to be expanded to include emissions-control product makers.
The $30 million tax credit will apply to the manufacturing equipment needed for the expansion, said Corning Inc. spokesman Joe Dunning.
The project is expected to be completed in 2015, Dunning said.
The company expects to add 250 full-time jobs over several years once production begins, Dunning said. The project will also create 275 temporary construction jobs, he added.
Dunning said the tax credit will help the company offset start-up costs, and made it more attractive to locate the expansion project in upstate New York, where operating costs are high.
Corning Inc. has also received local and state incentives for the project, including a 20-year tax break package from the Steuben County IDA and $3 million in state economic development funding.
The various incentives were a factor in the company selecting Erwin as the primary site for expanding its heavy duty diesel manufacturing capacity, Dunning said.
Corning Inc. had been mulling two options - Erwin and another site near Shanghai, China - for a major expansion to take advantage of projected growth in demand as air quality regulations tighten globally.
In the end, the company decided to expand in Erwin, and also expand an existing plant in Shanghai to serve as a finishing facility. Products made in Erwin will be completed and packaged in Shanghai for the China market.
The company says it is investing about $250 million in the two expansions, with the bulk of that investment in Erwin.
Eventually, Corning Inc. may build a new heavy duty diesel plant in Shanghai as well, as long-term market growth is projected in China.
Page 2 of 2 - The tax credit award was announced Thursday at the U.S. Department of Energy's American Energy and Manufacturing Competitiveness Summit. In all, $150 million in tax credits went to manufacturing facilities owned by 12 companies.