Intel Corporation (NASDAQ:INTC) will channel another $100 billion to expand its three-decade-long incentive program in Washington County, says a report from Biz Journals. The chipmaker will put its money into high-end equipment replacement under Oregon’s strategic investment program. The deal announced on Monday will last for 30 years and is still subject to approval by Hillsboro, Washington County and state officials.
Investment good for Oregon’s economy
On Monday, Oregon Gov. John Kitzhaber said, “Intel not only brings the kind of jobs and economic impact that reach across the entire state, but the innovation and perseverance that embodies the Oregon spirit.” Kitzhaber added that the landmark investment makes Oregon a global leader in high-tech manufacturing, and also establishes Oregon as a fitting location for businesses to grow and families to prosper.
Sean Robbins, Business Oregon’s director, said that Intel is a global leader that can invest anywhere in the world and they zeroed in on Oregon. A massive investment of $100 billion is an unparalleled commitment and gives a clear idea of where Oregon economy is heading and the states competitive role on the global platform. Robbins said that the investment also shows how the county, state and private sector in Oregon come together to get things done. At present, Intel has 17,500 workers in Hillsboro, and its 2012 payroll of $2.8 billion generated some $328 million in state taxes that year.
Intel taking advantage of tax exemptions
Intel Spokesperson Chelsea Hossaini said that the strategic investment made in the past allowed the company to choose Oregon for its most advanced site. “This is new money,” Hossaini emphasized, “This is money that hasn’t been spent yet.”
Hossaini said that the parties involved have been negotiating for some time, and Intel is running four strategic investment program agreements. The latest one was approved in 2005 and was worth $25 billion. According to Hossaini, investment under that agreement was taken forward in 2010, and company is already closing in on that commitment.
Companies investing in Oregon’s strategic investment program enjoy certain tax exemptions depending on the amount of money spent by the business on expansion or capital equipment. Intel has already taken advantage of the the program in developing its $3 billion D1X fab in Hillsboro.