Manassas is considering a significant tax incentive to support Micron Technology Inc.’s planned expansion, which includes a $2 billion capital investment in its semiconductor manufacturing facility. The proposal, set to be discussed at the Manassas City Council meeting on Monday, February 10, 2025, would extend Micron’s favorable tax classification for semiconductor equipment through 2035.
The expansion comes as Micron is slated to receive $275 million from the U.S. Department of Commerce under the CHIPS and Science Act, a federal initiative to boost domestic semiconductor production. The funding will help Micron modernize and expand its Manassas facility, particularly by onshoring its 1-alpha DRAM technology, which improves memory chip performance and power efficiency. The project is expected to create over 400 direct manufacturing jobs and up to 2,700 indirect jobs at its peak.
City’s Proposed Tax Incentive
Micron, a longtime economic driver in Manassas, currently benefits from a Semiconductor Equipment Machinery and Tools tax rate of $0.756 per $100 of assessed value, significantly lower than the city’s standard rate of $2.10 for other manufacturers. This special classification saved Micron nearly $10 million in taxes in 2024, as the company paid $5.46 million instead of $15.18 million under the standard rate.
To incentivize Micron’s 2018 expansion, the city extended this tax rate through 2030. With Micron planning an additional $2 billion investment, it is requesting the incentive be extended by another five years through 2035. The city’s proposal includes a minimum 4% annual increase in tax collections, with projected payments growing from $5.68 million in 2025 to $8.41 million in 2035.
Economic Impact of Micron’s Expansion
Manassas has emerged as a hub for advanced manufacturing, defense, and high-tech industries, attracting major employers such as Lockheed Martin, BAE Systems and emerging aerospace companies like RapidFlight and Electra.aero. The city’s strategic location, highly skilled workforce, and competitive business environment have made it one of Virginia’s most sought-after locations for high-wage industries.
“Manassas has long been a hub for manufacturing, defense, professional and technical services, health care, and other high-wage businesses,” noted Manassas Mayor Michelle Davis-Younger, in a press release announcing the expansion.
Interim City Manager Doug Keen emphasized that the investment solidifies Manassas’ role as a key player in the global semiconductor industry, underscoring the city’s commitment to fostering business growth and technological innovation.
The Manassas City Council will review and discuss the proposed tax extension during its meeting starting at 5:30 p.m. If approved, the agreement would reaffirm the city’s commitment to fostering high-tech job growth while keeping Micron’s operations competitive globally.
The meeting is open to the public and will streamed online.
