The state of Ohio will provide about $1.3 billion in direct cash incentives to Intel for its planned investment in Columbus-area semiconductor production sites, Ohio Department of Development Director Lydia Mihalik said Friday.
That includes a $600 million in an “onshoring incentive grant,” and $691 million as an infrastructure investment for the localities around the plants, for water and wastewater capacity upgrades, roadwork and a water reclamation facility, Mihalik said in a press conference.
Also planned is $650 million job creation tax credit to the company over 30 years.
The work is far from done. Asked which incentives have been finally approved, Mihalik said the Ohio Tax Credit Authority will have its say over the tax credit, while the state will work with the General Assembly on the direct cash incentives.
And another $150 million from JobsOhio is also possible, that corporation said Friday.
It’s the largest economic development deal in Ohio’s history, and likely the largest incentives package in the state’s history, she said.
“The priority is to ensure that things are done right,” Mihalik said.
She did not comment on further possible incentives from JobsOhio or local communities. “In order to land a deal of this magnitude, it took a team-Ohio effort, and I’m only here today to talk about the state’s portion,” she said.
Shortly after her press conference, JobsOhio issued a statement saying it typically releases its incentives involvement after final agreements with companies are 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,” the private corporation said. “To support this transformational project, JobsOhio plans to assist Intel with up to $150 million in combined economic development and workforce grants.”
After any final agreements are executed, JobsOhio said it will post that assistance on its website.
Intel last Friday announced plans for an initial investment of more than $20 billion to build two leading-edge chip factories in Ohio, east of Columbus in Licking County. The investment will help boost American production to meet a fast-growing demand for semiconductors.
The early phase of the project is expected to create 3,000 Intel jobs and 7,000 construction jobs as the facilities are built, supporting tens of thousands of additional local long-term jobs.
What Intel calls the “mega-site” will accommodate a total of eight chip factories, also called “fabs.”
Over time, a total of about $100 billion of capital investments by Intel in Ohio are possible, Mihalik said. The project will add nearly $3 billion to Ohio’s gross state product, government officials have said.
“Some may wonder if it’s worth it, and the answer is yes,” she said.
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