Intel gets tax breaks while local authorities lose revenue, claims policy org

What happened

On 28 October 2026, the non-profit Good Jobs First published the report 'The Bleeding Edge: How the Public Pays the Costs of Intel's Semiconductor Manufacturing', claiming that Intel continues to receive tax breaks from Oregon and New Mexico that have cost those communities more than $1.2 billion in lost revenue since 2015, with the shortfall largely falling on schools funded by local governments. For Oregon, the report says property tax abatements under the Strategic Investment Program (SIP) exempted Intel from at least $1.14 billion, while Hillsboro schools lost $891 million in revenue from 2017 through 2025; over the same timeframe Intel paid Oregon $552.4 million in fees, less than a third of the value of its tax breaks. In New Mexico, the report puts property tax exemptions under Industrial Revenue Bonds (IRBs) at $99.6 million in foregone revenue since 2017, with Rio Rancho Public Schools losing an estimated $43.4 million over the same nine-year period, while Intel paid $41.6 million in required payments in lieu of taxes from 2017 through 2025, shared among affected local governments. Good Jobs First also notes Intel was awarded billions under the CHIPS Act: an initial $7.86 billion secured under the Biden administration, of which $2.2 billion is believed to have been paid out; the incoming Trump administration rethought the scheme and made an $8.9 billion deal for 10 percent of Intel's common stock, composed of the remaining $5.7 billion of CHIPS Act cash plus $3.2 billion under the Secure Enclave program for military semiconductors. The organization estimates Intel laid off more than 4,700 workers at its Oregon and New Mexico facilities over the past three years. The report questions whether continued tax breaks are necessary for these decades-old established sites and recommends other communities question whether state and local tax breaks are needed. Intel responded that it works closely with governments in the regions where it operates to leverage incentives supporting leading-edge semiconductor R&D and manufacturing, without providing additional details.

Impact and signal

Affected components and suppliers

Source and time

Source: The Register · 10/28/2026 · View original source