LOC News
Critical Decision Approaching for Legislature on Semiconductor Package
LC 4320 was the original starting point for the semiconductor package. SB 4 is now the vehicle that the Joint Committee on Semiconductors (JSEMI) will be reviewing over the next couple of weeks. The current draft has far more details than a week ago, but critical pieces have yet to be added to align with the recommendations of the Oregon Semiconductor Competitiveness Task Force. These include:
- Sunset extensions for Enterprise Zone programs and SIP-Gain Share;
- The addition of a Research & Development Tax Credit;
- Addressing Oregon’s land use system as it relates to industrial lands in a way that captures the full opportunity presented by the CHIPS and Science Act; and
- Committed investment in Oregon’s workforce via Oregon’s higher education institutions that include colleges and universities.
The JSEMI committee and Oregon’s legislative leadership are at a critical decision point. The question is simple,
“Does the Legislature want to invest in Oregon in a way that supports our national security objectives while delivering equitable economic opportunities and shared prosperity for communities across the state, or not?”
The JSEMI committee is committed to this outcome, and it’s imperative that Oregon’s legislative leadership is equally committed. The LOC has been part of a diverse advocacy group that includes labor, business, economic development agencies, educational interests, workforce interests, and many local governments across Oregon. The group’s messages have been unified from day one and its approach remains steady, because the members collectively understand what’s at stake for Oregon.
Without quick action to provide a competitive package, Oregon could fumble this opportunity and be surpassed by states that have the desire to leverage in-state investments from a pool of $53 billion in generational investments from the federal CHIPS Act. There is a reason why states like Arizona, Texas, New York, Washington, and even Kansas are in the national news: these states are taking this investment opportunity seriously and have built a competitive package.
Grass roots outreach from every city in Oregon will be critical in the effort to secure a robust semiconductor funding package. Contact your state senator and state representative and make sure they understand the value of taking a bold step. Ask them to commit to supporting a package and let their respective House and Senate leaders know they have support.
City messages should include the following:
- Extend sunset provisions for the enterprise zone programs and SIP-Gainshare. These are local investment incentives that work, and they help a critical narrative for companies and the U.S. Department of Commerce to evaluate when determining what project applications will receive federal funding.
- Include a Research and Development Tax Credit as a grant program and not a forgivable loan. Without a grant structure, this tax is meaningless for companies and the Department of Commerce in their evaluations.
- Find a land use solution that can provide certainty for major research and development fabs and critical supply chain opportunities. Oregon’s land use structure is a major barrier for attracting semiconductor and advanced manufacturing investments.
- Extend the Regionally Significant Industrial Site readiness program to facilitate shovel-ready parcels for manufacturers. Due to a lack of site readiness, 57% of local governments who responded to a survey had to walk away from business opportunities.
Contact: Jim McCauley, Legislative Director - jmccauley@orcities.org
Last Updated 2/24/23