COLUMBUS, Ohio (WCMH) — With further delays and lessening focus on projects like Intel’s Ohio One project in New Albany, readers asked NBC4 about measures to recoup Ohio’s investments if need be.
When Intel announced its investment in Ohio, it was the face of American semiconductor manufacturing. The Ohio One plant was initially slated to open this year but has been delayed twice. Most recently, Intel pushed the opening back to 2030 or 2031, drawing questions from local community members about if Intel is living up to its end of the deal.
Ohio gave Intel a $600 million onshoring grant in September 2023. The deal included “clawback” measures, allowing the state to recoup their funds if Intel does not meet its investment and job creation commitments. The state required Intel to provide an annual performance report detailing how grant funds were spent, Intel’s investments, construction activity and how many jobs were created every year.
“The grant provides $300 million apiece for two chip factories, or fabs, to support Intel’s commitment to create 3,000 jobs, $405 million in annual payroll and more than $20 billion in fixed asset investment by Dec. 31, 2028,” the governor’s office said.
When Intel announced its most recent development, a spokesperson for the governor’s office said they would not claw back any funds because Intel had not withdrawn its commitment to Ohio. However, Department of Development chief spokesperson Mason Waldvogel said even with delayed timelines, the state still expects Intel to meet those requirements. Watch Gov. DeWine address Intel’s future in the video player above.
“Large-scale projects of this magnitude are inherently complex, and while we hope to have the plants online sooner, construction estimates may shift,” Waldvogel said. “However, as the agreement stands, Intel is still expected to meet its investment, job, and payroll commitments by 2028, and that has not changed.”
Waldvogel said Intel is already making significant progress, including 6.4 million hours of construction worked by Ohioans from 83 of the state’s 88 counties. Waldvogel provided Intel’s obligatory report to the state, which showed just seven of its 163 employees at Ohio One did not live in Ohio, although those funds made up $10.5 million of its $30.6 million payroll. According to the report, Intel completed all major underground work and much of the foundation by the end of 2024.
Another protective measure was included in House Bill 687 in 2023, saying companies like Intel could owe back their tax credits if they do not meet the employee, payroll or capital investments they promised when they were granted the tax exemption. Although H.B. 687 does not mention Intel by name, the provisions apply to specialized Ohio semiconductor wafer manufacturing facilities, of which Intel is the primary candidate.
Intel benefits from five tax breaks under H.B. 687, including sales tax and commercial activity tax exemptions. Intel could recoupment payments on these tax credits if they do not live up to their promises, although the total cannot exceed the sales, use and commercial activity tax exemptions granted.
Not all investments can be recuperated. As Policy Matters Ohio pointed out in 2023, the deal did not include clawback measures for a $500 million water, wastewater and road infrastructure investment, nor a $300 million water reclamation facility the state would pay for at the Intel site.