Intel tax credits are a missed opportunity
Posted September 26, 2022 in Press Releases
Semiconductor project lacks needed safeguards, accountability
Today, the Ohio Tax Credit Authority approved a tax credit that could be worth up to $650 million for Intel Corporation’s semiconductor plants in New Albany. Policy Matters Ohio released the following statement by Research Director Zach Schiller on the action:
“When policymakers decide to give a wealthy corporation like Intel hundreds of millions of the public’s dollars, the public should have a clear idea of the cost and how the deal will increase prosperity and expand opportunity for everyone.
“Today, the Ohio Tax Credit Authority chose not to provide real accountability for the Intel project. Beyond the hundreds of millions it approved for Intel today, the Authority effectively OK’d additional tax breaks worth hundreds of millions of dollars – but how much more, we don’t know. The General Assembly approved legislation that tied these tax breaks to the approval of the tax credits.
“Tax breaks for giant corporations like Intel come at the expense of revenue that could fund essential programs like public schools, care for seniors or children living in foster care. That’s why it’s so important that policymakers ensure that Ohioans know the cost of their decisions, and in this case, they haven’t done so.
“As beneficial as the Intel project could be to Ohio, it should come with safeguards – that the bulk of the jobs will go to Ohioans, that any of the aid can be clawed back if promises aren’t met, and that the community has input on its substantial impacts. The General Assembly and the Tax Credit Authority have failed to provide those safeguards, so the project lacks the accountability it should have.”
For more information on some of Ohio’s new special interest tax breaks, read this brief.
Read our initial recommendations about how to make the Intel deal do the most good for the most Ohioans.