Ohio commits $2 bil to Intel in cash incentives, infrastructure updates, tax credits
COLUMBUS, Ohio (WTVG) - The state of Ohio has made major investment commitments to Intel in an effort to bring the tech company to the state. Intel announced last week that they plan to build a chip-making facility in the Buckeye State, a reported $20 billion investment from the company. The new facility will be built on a 926-acre site in Licking County, near Columbus. The company has also committed to building a second facility.
In an announcement on Friday, Ohio Department of Development Director Lydia Mihalik said that the state is giving the company $1.3 billion in cash incentives in the form of a $600 million onshoring incentive grant and a commitment of $691 million in infrastructure investments. According to Mihalik, for every 6 cents the state invests in direct cash incentives, Intel will invest $1. The incentives will also be performance-based and the company will need to meet benchmarks in order to receive the grant funding.
The infrastructure spending will be made up of specific improvements. These include more than $100 million in water and wastewater improvements, $300 million in a water reclamation facility, and $290 million in road work.
Additionally, the state is offering $650 million in the form of a job creation tax credit. This will also be based on performance. The company needs to make investments in itself as well as support community growth and job creation.
When asked whether the state had denied any requests from the company, Mihalik said she didn’t believe they had.
In addition to the state funding announced during the press conference, JobsOhio also announced that it plans to provide up to $150 million in assistance to Intel. That funding includes combined economic development and workforce grants.
“JobsOhio is Ohio’s private economic development corporation that helped provide a competitive differentiator in bringing Intel to Ohio,” explained JobsOhio President and CEO J.P. Nauseef in a prepared statement. “Our assistance to companies is always determined through a process that ensures a return on investment for Ohio, and we typically release our assistance for companies after final agreements have been executed. Intel’s investment in Ohio is unprecedented in size and importance for America as it adds a new industry and generations of potential for Ohioans.
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