Intel gets tax breaks while local authorities lose revenue, claims policy org

Good Jobs First, a policy organization, has criticized Intel for receiving tax breaks in Oregon and New Mexico while local authorities have lost significant revenue. The non-profit organization claims that Intel's property tax abatements in Hillsboro, Oregon, and Rio Rancho, New Mexico have cost these communities over $1.2 billion in lost revenue since 2015.

In Oregon, the property tax exemptions from Intel's Strategic Investment Program (SIP) amounted to at least $1.14 billion, while Hillsboro schools lost $891 million in revenue. In New Mexico, Intel's tax exemptions from Industrial Revenue Bonds (IRBs) cost the state $99.6 million in foregone revenue since 2017, and Rio Rancho's Public Schools lost $43.4 million over the same nine-year period.

Intel paid less than a third of the value of its tax breaks in fees. Despite these subsidies, Intel received billions in funding under the CHIPS Act, including an initial $7.86 billion and $2.2 billion already paid out. The non-profit questions whether state and local tax breaks are truly necessary for Intel, given its established facilities and the billions in federal grants and tax credits it receives.

Intel's spokesperson stated that the company works closely with governments to leverage incentives for leading-edge semiconductor R&D and manufacturing.