Intel Announces Investments. . . Mostly Elsewhere

Chuck Sheketoff

Oregon expanded the Oregon R&D tax credit in the 2003 and 2005 legislative sessions. Come January 1, instead of a $500,000 cap it will be up to $2 million. Proof that taxes don’t matter, Intel last week announced that they are making major new investments in R&D in China. They don’t say how much they are investing, but it is enough that it merited a company news release.

The 2005 Legislature also just moved implementation of the single sales factor apportionment to tax year 2005. Single sales factor apportionment is supposed to encourage manufacturing investments in Oregon. Now, about a month after the Legislature leaves town, Intel announces that it is investing $190 million in a Colorado manufacturing facility, $150 million in a Massachusetts manufacturing facility. According to the Portland Business Journal, Oregon Intel said they are also investing $10 million on an annex at Ronler Acres, $4 million on a water treatment building, and $15 million on water treatment equipment.

That’s right, $374 million in new investments (plus untold millions in R&D in China) in manufacturing and R&D. Oregon gets merely $29 million of the investments.

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Chuck Sheketoff is the executive director of the Oregon Center for Public Policy.   You can sign up to receive email notification of OCPP materials at www.ocpp.org

By Chuck Sheketoff Sept. 21, 2005