Intel Corporation (NASDAQ:INTC) has entered into an agreement with the State of Oregon that allows it go ahead with an expansion of its D1X facility in Hillsboro, OR.
As per the agreement, Intel will invest at least $500 million and create a minimum of 500 new jobs.Oregon already has Intel’s largest and most comprehensive site in the world.
Intel is also Oregon’s largest private-sector employer.
Last year, the Oregon State Legislature granted the Governor authority to negotiate and offer incentives to encourage capital investment and job creation.
Under the agreement signed by Gov. John A. Kitzhaber with Intel, the company is committing to make significant investments and create jobs in return for ensuring that their corporate tax rate will continue to be calculated for the next 30 years based on the single sales factor apportionment method.
Under this corporate tax formula, companies such as Intel and Nike are being taxed only on the basis of their sales in the state, as opposed to the three-factor method of property, payroll and sales.
Intel does pay local property taxes. In fact, Intel is the largest property tax payer in Washington County, OR. Since 1974, the company has invested more than $25 billion in Oregon. They have around 17,000 employees in Oregon.
Intel finished construction on the $3 billion first-phase of the D1X facility at their Ronler Acres Campus in Hillsboro earlier this year. It is a core component of Intel’s next-generation manufacturing technology for their American facilities.
The agreement to create 500 jobs and make $500 million in new investments is distinct from the investment Intel has made for D1X Mod 1.
Gov. Kitzhaber said Intel’s commitment to Oregon is staggering, from the company’s impact on job growth to revenue for critical services and their influence on the innovation economy.
Neil Tunmore, vice president of the Technology and Manufacturing Group and director for Corporate Services, Intel, said that Oregon continues to foster an investment climate that allows Intel to create jobs and manufacture leading-edge technology in America.
He said the tax agreement provides Intel with the certainty they need for expanding investments in a globally competitive industry. Tunmore added that the D1X project reinforces Oregon’s claim to Intel’s most advanced and largest site in the world.