The 2014 agreement would continue a practice of concurrent exemption periods applying to specific investment packages over time. A similar approach was taken when investment under the 2005 SIP began while the 1999 SIP was still in effect. The 2014 agreement allows separate investment packages to be identified and accounted for so long as no exemption period extended beyond the life of the agreement. Intel would gain greater flexibility when timing equipment replacement and the local governments would gain an extended period of certainty with respect to the methodology used to compute Intel's taxes and fees.
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Under the 2014 agreement, multiple exemption periods of 15 years each would be allowed. How would possible concurrent exemption periods be treated?
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How have Intel's property tax and fee payments been estimated?
Actual payments under the proposed 30-year SIP agreement would depend on the nature and timing of Intel's investment. Nonetheless, based on a scenario of two $50 billion investment packages focused on the replacement of semiconductor manufacturing equipment, Intel's total estimated property tax and fee payments for the full 30-year period are projected in the table below. Other investment scenarios would result in different estimates than those shown here.