Ohio set to approve $650 million tax break for Intel
The state is set to award additional financial incentives to Intel to save the semiconductor company about $650 million in state taxes over the next 30 years for its New Albany project.
Intel is one of six companies on the agenda for Monday’s meeting of the Ohio Tax Credit Authority, a state agency that approves tax incentives for businesses in exchange for their promise to create jobs.
Intel said it would create 3,000 jobs with its $20 billion plan to build two semiconductor factories in New Albany. The official inauguration of the site took place two weeks ago.
The tax credits are part of more than $2 billion in incentives provided by the state to woo Intel.
The state has also pledged $600 million to help offset the cost of developing chip factories in America and $691 million for infrastructure improvements in the region.
JobsOhio, the state’s economic development arm, has also committed $150 million in economic development and labor grants and the city of New Albany said it will provide a 100% abatement of the 30-year property tax on buildings Intel builds in the city’s business park. .
Intel used $111 million of JobsOhio money to buy the land where the two factories are being built.
The Tax Credit Authority approves applications solicited by JobsOhio and regional economic development groups on behalf of companies that promise to invest in the state, while creating or maintaining jobs.
Intel’s ability to raise the estimated $650 million from incentives expected to be approved by the Tax Credit Authority will depend on the jobs it creates. If he doesn’t create jobs, he doesn’t get the tax relief.
Also on Monday’s agenda is a tax break for Ford Motor Co. over its plan to invest $1.5 billion in the Ford Ohio Assembly Plant in Avon Lake to assemble a new commercial electric vehicle announced in June. The investment should create 1,800 new hourly jobs.