The state of Oregon is trying to give other established tech centers a run for their money, and it’s talking the language big organizations understand – low red tape and tax abatements.

The northwestern state, which previously had been known for outdoors leisure activities, has been working to attract industry, according to Governor Ted Kulongoski, who spoke to press and analysts at an event at Intel’s Hillsboro, Ore campus this week.

The Governor’s economic revitalization team (GERT) has created a program to “make it easy for companies who want to locate here,” said Kulongoski.

“We’ve established 31 industrial land sites,” he said. Of these pre-zoned sites, eight have already been snapped up by companies looking to take advantage of the tax advantages and lifestyle benefits that Oregon offers. One of those companies establishing a presence in Oregon is Silicon Valley’s Google.

And U.S. Senator Gordon Smith was at Intel speaking the language of business as well. 

“What is banging against U.S. competitiveness is our tax structure,” he said, addressing press and analysts at the Intel event. “While this issue is not fully ripe at the federal level yet, the economics of it will force change.”

Smith quoted Intel’s CEO, Paul Otellini, who recently made a trip to lobby politicians in Washington, saying that it costs $1 billion more to build and operate a fab in the United States than it does elsewhere in the world, primarily due to U.S. tax policy.

Smith said companies and citizens can expect to see considerable attention to this sort of tax policy in the next congressional session.

“The focus on fairness in taxation needs to be replaced with a focus on effectiveness,” he said. “If it’s efficient, fairness will take care of itself.”

The senator also called for relief on the U.S. government’s immigration policy, and indicated that the nation is likely to see a radical change in its H1B visa program – work visas – in the next session of congress.

“I think it should not only change, I think it should include citizenship,” he said.  Smith pointed out that students who pursue degrees and advanced degrees in the United States now must leave the country after they finish their educations.

“We should give them a short road to citizenship,” he said.

Although Intel’s official headquarters is in Santa Clara, Calif. --  Silicon Valley – the chipmaker’s Hillsboro, Ore. facility is really the heart of its operation, housing its logic research and development and boasting the largest headcount of any of the company’s locations. Intel has taken advantage of Oregon’s tax abatement program, according to Kulongoski.

By: DocMemory
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