Ohio capital budget promises Intel more tax breaks
The state of Ohio continues to roll out the economic red carpet in support of Intel's new megaproject in Licking County.
Why it matters: Fiscal analysts estimate additional incentives from the state capital budget will cost Ohio hundreds of millions of dollars in tax revenue.
State of play: Ohio had already offered Intel nearly $2 billion in incentives, including direct payments, infrastructure improvements and a slew of tax credits.
- That doesn't include additional grant funding from the state's private economic development arm, JobsOhio, and a city tax abatement from New Albany.
Details: The budget exempts Intel from paying a commercial activity tax on equipment costing more than $100 million.
- It also exempts it from paying state sales tax on some equipment used for construction, manufacturing and research and development.
Yes, but: Included is a clawback provision that would let Ohio recoup lost funds if Intel doesn't uphold its promise to create thousands of high-paying jobs.
What they're saying: Research group Policy Matters Ohio argues the state should have given citizens more time to consider the weight of these incentives before approving them, the Ohio Capital Journal reports.
- "These new exemptions can't possibly be subject to sufficient scrutiny in a day's time," the group contends.
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