Oregon gives Intel a Nike-like tax deal

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PORTLAND — Gov. John Kitzhaber is giving Intel Corp. a tax deal similar to the one he granted Nike a year ago.

Kitzhaber announced Friday that he's signed a 30-year agreement promising that any changes to Oregon's corporate tax structure won't affect Intel. In exchange, the computer chipmaker says it will expand a semiconductor plant in Hillsboro and create at least 500 jobs.

The Legislature gave Kitzhaber authority to make tax guarantees to companies planning large investments. It came in response to a demand from Nike, which said it would expand in Oregon if the state promised not to change a favorable tax structure.

The state taxes corporations based only on their Oregon sales. The formula is beneficial to large companies that have many employees but few sales in Oregon.