Ohio agency approves Intel tax incentives that could reach $650 million
The state officially approved its largest package of job-creation-related incentives — incentives that could total up to $650 million over 30 years for Intel for its $20 billion investment in the county of Licking.
The Ohio Tax Credit Authority on Monday approved the incentive program, one of six projects approved by the authority.
As is the case with most projects submitted to the authority, there was little discussion of the Intel project before the four members approved it.
The $650 million approved Monday is part of a total incentive package from Ohio to Intel that is expected to top $2 billion.
Unlike other public incentives for Intel, the one approved by the authority is based on the number of jobs created. The incentive begins in 2024; Intel said it expects semiconductor production to begin in 2025.
Intel announced plans in January to create 3,000 jobs as part of its $20 billion investment in New Albany, the largest economic development project in the state’s history. Those jobs will have an annual payroll of $405 million, according to Intel.
Intel said it plans to start recruiting this fall on the college campus, as it plans to ramp up recruitment before the two factories open.
In addition to the $650 approved on Monday, the state pledged $600 million to help offset the cost of developing chip factories in America and $691 million for infrastructure improvements in the region. Other state and local incentives will push the total to more than $2 billion.
The authority also on Monday approved Ford Motor Co.’s plan to invest $1.5 billion in the Ford Ohio assembly plant in Avon Lake to assemble a new commercial electric vehicle that was announced in June. The investment is expected to create around 2,000 jobs with a payroll of $108 million per year.
Additionally, the authority approved a plan for EASE Logistics to create 140 jobs in Dublin where it plans to restore a building for its new global headquarters.
The company will invest $25 million in the 6000 Perimeter Place, which will be renamed the EASE Building. The company plans to start hiring in the areas of sales, marketing, accounting and information technology. The new jobs will have an annual payroll of $7 million.
The company, founded in 2014, currently has 170 employees in Dublin.
Another central Ohio plan to be approved Monday is for technology and engineering consulting firm BJSS to open an office in the Columbus area, creating 50 information technology jobs. The UK-based company is expected to move to a site in the region after hiring begins.