Gov. Kate Brown Of Oregon Demands For A New Tax Credit And Other Incentives For Semiconductors

On April 5, 2022, Governor Kate Brown signs the “Future Ready Oregon” workforce spending plan, a $200 million initiative, at the Intel campus in Hillsboro, Oregon.

In order to pass a new tax credit and other incentives to boost Oregon’s semiconductor industry, Gov. Kate Brown is urging the Legislature to move swiftly the following year.

Brown presented the broad ideas of a strategy she developed with businessmen and U.S. Sen. Ron Wyden, D-Oregon, during a state House committee meeting on Wednesday to put the state in a competitive position to compete for $280 billion in new federal funding from the CHIPS and Science Act for semiconductor manufacturing and technological research that Congress passed in late July.

Brown addressed the Economic Development and Small Business Committee, “We must move rapidly.” “Seizing the opportunity before us now in the fiercely competitive semiconductor business is crucial because we are in a 50-state battle for CHIPS financing. The good news is that supporting Oregon families, creating jobs, and developing a strong workforce are all Oregon’s values.

Thanks in large part to Intel, which has more than 20,000 Oregonians working for it at its Hillsboro site, Oregon is a global leader in the semiconductor sector. According to Duncan Wyse, president of the Oregon Business Council, Intel has suppliers from 15 other Oregon counties.

According to Wyse, there are only really three locations where semiconductor innovation is centered globally. “South Korea, Taiwan, and Oregon. We are the industry leader in the world for semiconductor design and production.

Only Texas and California employ more people in the semiconductor business than Oregon, which accounts for 15% of the country’s semiconductor workforce. According to Wyse, if federal assistance were allocated according to the size of each state’s industry, Oregon would get $40 billion under the CHIPS Act.

According to Wyse, every $1 billion in capital expenditures would result in 7,000 new jobs, the majority of which would be temporary construction positions, and $44 million in immediate state and local tax revenue. According to him, the state may eventually anticipate 2,000 new permanent jobs in the semiconductor sector, 4,000 positions in adjacent industries, and around $56 million in tax revenue yearly for municipal and state governments.

That employment would be a mixture of ones that merely required a high school diploma and technical training and those that required graduate-level degrees. In the semiconductor sector, especially in manufacturing, close to half of the workers have no formal education beyond a high school diploma or associate’s degree.

In addition to urging more targeted funding for Oregon universities, Brown’s proposal called for utilizing the $200 million Future Ready Oregon job training program approved this year to assist in preparing workers without degrees for careers in the sector. These fields like engineering and computer science would benefit from an increase in the number of students graduating with degrees in these fields. She made no mention of the amount of cash that should be made accessible.

Brown stated, “My objective is for us to collaborate to create a workable proposal that the Legislature can work on day one.

A new tax credit for research and development would be a part of that strategy. Such a tax credit was once available in Oregon, but it ended at the end of 2017.

Manufacturing Sites

Additionally, Brown stated on Wednesday that she would be giving local governments $1 million from the Governor’s Strategic Reserve Fund, which she manages, to assist in selecting and preparing possible manufacturing locations. As demonstrated by Intel’s choice to develop a $20 billion campus in Ohio, not Oregon, last year, a lack of industrial land has made it difficult for the state to convince present corporations to grow in Oregon or lure new companies here.

Nothing matters if we don’t have land to build on.

Gov. Kate Brown Of Oregon Demands For A New Tax Credit
Gov. Kate Brown Of Oregon Demands For A New Tax Credit

She advised the group that the Legislature should offer more assistance the following year. She is supporting a proposal before the Legislature’s Emergency Board this week to spend more than $350,000 so the Department of Environmental Quality can hire four new permanent staff members to process applications and work on enhancing access to industrial land. She is also pushing for the expediting of environmental permits.

Making additional property available is essential, according to Hillsboro’s assistant city manager Rahim Harji, especially in the suburbs of Portland. Semiconductor producers are searching for sizable, ready-to-build lots close to urban areas or educational institutions that can supply highly skilled labor.

Nothing else counts if we don’t have land to build on, Harji added.

Based on the data Brown and business executives gave, state representative Janelle Bynum, a Democrat from Clackamas and the chair of the economic development and business committee, promised to draught legislation the following year.

Bynum stated in a statement, “I look forward to supporting initiatives to ensure we remain one. Oregon has long been an established leader in semiconductor manufacturing. This entails developing career paths and putting money into both public and private incentives in order to expand our labor force, produce well-paying jobs, and foster innovation.

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