Comment on Israel grants Intel $3.2 billion for new $25 billion chip plant

steventhedev@lemmy.world ⁨10⁩ ⁨months⁩ ago

Intel, whose investment will be over five years, will pay a corporate tax rate of 7.5% instead of 5% previously. The normal tax rate is 23%, but under Israel’s law to encourage investment in development areas, companies receive large benefits.

Usually these types of grants are never a good investment but the increased corporate tax rate alone covers a third of the grant (9b yearly taxable revenue at 2.5% over 5 years comes out to 1.125b).

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