Governor David A. Paterson recently announced significant new investments by IBM and New York state, accelerating New York state's international leadership in nanotechnology research and development and creating up to 1,000 new high-tech jobs Upstate. The state will provide a total of $140 million in economic development grants, leveraging more than a 10-to-one private investment of $1.5 billion from IBM.

The investment will go toward three separate and complementary components of a comprehensive project, supporting the nanotechnology chip computer activities of IBM: the expansion of IBM's operations at the College of Nanoscale Science and Engineering at the University at Albany (Albany NanoTech); the creation of a new, advanced semiconductor packaging research and development center at a to-be-determined area in Upstate New York; and the upgrading of IBM's East Fishkill facility in Dutchess County.

The three projects will collectively advance "nano-chip" technologies, including cutting-edge chip design, demonstration and testing, which all take place at Albany NanoTech. Nano-chips each carry billions of transistors, and applications include high-end personal computers and laptops; high-performance servers and supercomputers; virtual reality and advanced electronic games; medical devices and components; ultra-fast telecommunications devices; "sensor-on-a-chip" systems for anti-terrorism; and "soldier-in-the-field" remote monitoring and sensing.

IBM has agreed to expand its operations at Albany NanoTech, and the state will also provide $25 million to acquire state-of-the-art infrastructure and advanced semiconductor tooling at that location, resulting in the creation of 325 new research and development jobs. To build on the successes at Albany NanoTech, the state will invest $50 million toward the establishment of a new, 120,000-square-foot semiconductor packaging center at a to-be-determined location in Upstate New York. This center will be established, managed and owned by the College of Nanoscale Science and Engineering, with IBM conducting operations at that site. Rensselaer Polytechnic Institute (RPI) will also be a research partner in the new packaging facility. It is expected this public-private partnership will ultimately create over 675 jobs.

The agreement will also help IBM retain more than 1,000 key semiconductor jobs at its East Fishkill plant in Dutchess County. The company has agreed to provide significant resources to upgrade that site with state-of-the-art technology. The state will additionally provide $65 million toward that effort.

Governor Edward G. Rendell signed into law a new, more efficient tax collection system that could yield more than $200 million for municipalities and school systems and improve Pennsylvania's business climate through the standardization, coordination and accountability it provides.

The legislation includes a number of important improvements:

• Establishing uniform withholding, remittance and distribution requirements.
• Requiring that employers withhold all local income taxes imposed on the compensation of their employees and remit those taxes to only one collector, even if an employer operates in multiple counties.
• Instituting a continually updated, comprehensive tax register, maximum twice-yearly rate changes, a uniform definition of taxable income, and a system of appeals.
• Strengthening reporting requirements so that each tax dollar is tracked from the time it is withheld until it is received by the appropriate taxing jurisdiction.
• Requiring that the commonwealth issue one set of rules and regulations that apply to all collectors, taxpayers and employers.
• Requiring that DCED develop uniform forms, notices, reports, returns, schedules, and codes for school districts, municipalities and tax collection districts.
• Requiring that tax collectors keep a record of all public monies received and distributed, and submit monthly reports to each taxing jurisdiction and the tax collection district that must be reconciled with other records in an annual audit.
• Providing for more accountability, transparency, oversight, and enforcement.