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# New York backs planned $375 million rare-earth facility with performance-based tax credits
- URL: https://www.theamericanquorum.com/state-news-new-york-2026-10-20-a/
- Published: 2026-10-20T18:23:28.000Z
- Updated: 2026-10-20T18:23:28.000Z
- Description: Phoenix Tailings plans a $375 million separation facility at Eastman Business Park, with some operations expected in 2027. New York’s offer of up to $3 million in tax credits is tied to performance, while larger job totals remain projections.
- Author: News Desk
- Tags: Business, New York

Phoenix Tailings plans a $375 million rare-earth separation facility at Eastman Business Park in Monroe County, with New York offering up to $3 million in performance-based tax credits. Gov. Kathy Hochul [announced October 20](https://www.governor.ny.gov/news/governor-hochul-announces-phoenix-tailings-establish-375-million-commercial-scale-rare-earth?ref=theamericanquorum.com) that the Massachusetts-based company intends to occupy 500,000 square feet and has committed to creating at least 90 jobs.

According to the [state](https://www.governor.ny.gov/news/governor-hochul-announces-phoenix-tailings-establish-375-million-commercial-scale-rare-earth?ref=theamericanquorum.com) and [company](https://phoenixtailings.com/press/phoenix-tailings-selects-rochester?ref=theamericanquorum.com), some operations are expected to begin in 2027, with full production projected for 2028\. Those dates and the larger employment forecast describe a planned expansion, not an operating plant or jobs already filled. The governor’s office says the site could eventually support more than 200 direct New York jobs.

The [company’s announcement](https://phoenixtailings.com/press/phoenix-tailings-selects-rochester?ref=theamericanquorum.com) calls the facility Freedom Separation and places it within a broader $1.2 billion-plus separation-and-metallization project. Phoenix says Rochester’s engineering, chemical-processing and manufacturing workforce, together with existing industrial infrastructure, helped determine its choice after a nationwide search.

## Different stages, different output measures

[Phoenix describes](https://phoenixtailings.com/press/phoenix-tailings-selects-rochester?ref=theamericanquorum.com) a process that can use mined and recycled feedstocks to produce separated rare-earth oxides for later metal production. At full capacity, the company projects annual throughput above 18,000 tons and output exceeding 4,400 tons of separated oxides. These are corporate production targets, not independently verified operating results.

The [state announcement](https://www.governor.ny.gov/news/governor-hochul-announces-phoenix-tailings-establish-375-million-commercial-scale-rare-earth?ref=theamericanquorum.com) describes downstream capacity differently: the separated material could support about 3,000 tons of rare-earth metals at the company’s other facilities. Feedstock, separated oxides and finished metals are different measures; the figures should not be combined as though they represent identical products coming out of the Rochester site.

[Reuters reported](https://www.reuters.com/world/china/phoenix-tailings-build-375-million-rare-earths-facility-new-york-state-2026-10-20/?ref=theamericanquorum.com) the project as part of a wider U.S. effort to reduce reliance on China’s rare-earth processing capacity. That national objective gives the investment a supply-chain role beyond its local footprint, but does not turn planned capacity into material already available to manufacturers.

## How the state incentive works

The tax-credit offer comes through Empire State Development’s [Excelsior program](https://esd.ny.gov/excelsior-jobs-program?ref=theamericanquorum.com). Its general rules require participating businesses to meet and maintain job and investment thresholds before earning credits. Benefits can extend over up to 10 years under an established preliminary schedule. ESD describes the credits as fully refundable and available to eligible firms in strategic industries, including manufacturing and scientific research and development. The governor’s announcement identifies a ceiling of $3 million, not an unconditional upfront grant.

That [distinction](https://esd.ny.gov/excelsior-jobs-program?ref=theamericanquorum.com) matters when comparing the public incentive with the company’s much larger planned investment. The program links tax benefits to performance rather than treating an announcement alone as delivery. Its menu includes jobs, investment and research-and-development credits; the project announcement does not specify a final breakdown among credit types.

Phoenix also cites a $500 million conditional federal loan commitment for its broader platform. The [governor’s office](https://www.governor.ny.gov/news/governor-hochul-announces-phoenix-tailings-establish-375-million-commercial-scale-rare-earth?ref=theamericanquorum.com) says that financing remains subject to review before finalization. For New York, the near-term benchmarks are therefore execution of the facility plan, actual hiring and progress toward the stated production schedule—not simply the headline investment total.