Ohio Agency Gets Intel Tax Relief Wrong; gonna have to fix it
The Ohio Tax Credit Authority said Monday night that it approved a tax relief rate that was incorrect at its Monday morning meeting. The agency said it would correct the error at an upcoming meeting.
The amount approved Monday shows the total tax relief for Intel is estimated at $475 million over 30 years.
The overhaul will increase this, although it’s unclear by how much. A new estimate will be provided once the project is presented to the authority at a future meeting. The state estimated the tax relief was worth $650 million.
The estimate is based on employee salary projections for the next 30 years.
The tax relief is part of a state incentive package for Intel that is expected to reach $2 billion, including $600 million that reflects the cost of developing chip factories in America and $691 million in infrastructure improvements in the region.
Additionally, JobsOhio, the state’s economic development arm, provides $150 million in economic development and labor grants, and New Albany offers a 100% property tax abatement over 30 years. .
JobsOhio and the authority blamed Monday’s error on a clerical or administrative error. A JobsOhio representative presented the project and the incorrect tax rate to the authority before the authority voted on it.
Intel said it would create 3,000 jobs at its Licking County semiconductor plants, the state’s largest economic development project. The jobs payroll is expected to be $405 million per year by the end of 2028.
The authority approves projects that provide tax breaks to businesses in exchange for new jobs.
“Intel is investing significant resources to attract, develop, recognize and reward the people who keep Intel at the forefront of innovation and make Intel an employer of choice, and we expect Intel’s investment in Ohio is creating more than 3,000 high-tech, high-wage employees. Intel jobs,” Intel said in a statement.
The tax relief was criticized by the liberal Policy Matters Ohio party.
The group’s research director, Zach Schiller, said the state had approved significant tax relief, including Monday’s, without fully understanding how much it would cost the state.
“Tax breaks for giant corporations like Intel come at the expense of revenue that could fund essential programs like public schools, elder care or children living in foster care,” he said in a statement. “That’s why it’s so important for decision-makers to ensure that Ohioans know the cost of their decisions, and in this case, they didn’t.”
The project was one of six to be approved by the authority. The projects will create 5,247 jobs and retain 2,153 jobs statewide. The projects are expected to create a new payroll of $530 million and stimulate more than $21.5 billion in investment.