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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Cirruslvr who wrote (83586)	6/16/1999 11:54:00 AM
From: Process Boy	Respond to of 186894

Intel Investors and Cirrus - Intel officially granted tax break in Oregon I guess I get to retire in my hometown after all! zdnet.com Oregon county gives Intel a break Intel gets a $200 million tax break but is penalized if it grows too fast By Reuters June 16, 1999 6:36 AM PT Hillsboro, Ore. -- Officials in a Portland suburb Tuesday granted a $200 million tax break to computer giant Intel Corp. with a novel provision that could discourage Intel job growth over the next 15 years. The tax break provision requires Intel (Nasdaq:INTC), the world's No. 1 computer chip maker, to pay an extra $1,000 for all new manufacturing jobs it adds at area plants above 1,000 new jobs in the 15-year period. Officials acknowledged the irony of the break: while most communities welcome as many new jobs as they can attract, prosperous Washington County west of Portland can be seen as penalizing job growth. But the county has absorbed thousands of jobs in the region's high tech boom of the past decade -- including thousands at Intel, which employs 11,000 people in the county -- and is more interested in limiting the impact on strapped schools and other infrastructure. "We're still pro-business," said Tom Brian, chairman of the Washington County Board of Commissioners, which unanimously approved the tax break and jobs provision Tuesday night after a three-hour public hearing. "It's a matter of pace -- and asking businesses to contribute to the impact (of job growth)," he said. Brian said that when Intel submitted its application for the break on local taxes -- allowed under a 1993 Oregon law -- company officials indicated they did not expect to add many jobs to their Oregon plants over the next 15 years. Brian said county officials began negotiating the corporation's tax break request based on that and decided to include a clause requiring Intel to pay more if it added more than the 1,000 manufacturing jobs it expected to add to its current jobs in the county. "We're not limiting the growth -- they can add all they want," Brian said. "They just have to help pay for the impact." Brian said he's been surprised by the attention the jobs provision has received. "To us, it was common sense," he said. Under the tax proposal, Intel is expected to pay about $19.35 million annually in taxes on its Washington County property and equipment over the next 15 years, an increase of $7.35 million annually over its current level, for a total increase of more than $110 million over the 15 years. The company will save a total of about $200 million over those 15 years by making certain guaranteed payments in return for a reduced tax rate on equipment the company plans to add, county officials said. Intel had said it would not make the additional investment needed to retain jobs in the region if it had to pay full property taxes on the equipment.