United States Tax Policy

Intel public policy: How Intel promotes innovation worldwide

Intel is a world leader in designing and manufacturing essential technologies that power the cloud and an increasingly smart and connected world. As a high-tech manufacturer, Intel operates globally, yet most of its advanced manufacturing and research and development (R&D) is done in the United States (U.S.). Intel is one of the largest investors in R&D among U.S. publicly traded companies and invests heavily in the U.S. economy with capital and jobs. Intel supports a stable tax system that encourages U.S. innovation and manufacturing. Moreover, as a multi-national corporation operating on a global stage, Intel encourages a U.S. tax policy that provides a competitive global tax system for U.S. headquartered companies.

Domestic Manufacturing Investment Is Foundation of Economic and National Security

"Today I had the honor of testifying before the Senate Finance Committee’s hearing on 'Made in America: Effect of the U.S. Tax Code on Domestic Manufacturing,' where I shared Intel’s perspective on the urgent need for federal investment in the domestic semiconductor manufacturing industry. For more than 50 years, Intel has fueled job growth and the development of new technologies that have had significant economic benefits, from 5G to artificial intelligence, and we are the only company that has built leading edge fabs in the U.S. over the past five years."

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Key Issues

Favorable treatment of R&D activities

Intel invests on average $13 billion a year in R&D. Pro-innovation tax policy helps keep the U.S. competitive in the global race for R&D investment dollars. Tax policy changes are needed to support U.S. companies’ investments in U.S. innovation. Accordingly, Intel is a part of the leadership team of the R&D Coalition, which supports tax incentives that encourage businesses to invest in the R&D of new products and ideas. For example, we support the repeal of the 2022 requirement to amortize deductions for R&D expenditures. Additionally, we support preserving the current permanent R&D alternative simplified credit, which helps keep the U.S. competitive in the global race for R&D investment dollars.

A balanced and stable international tax system

Intel supports a balanced international tax system that is stable and enhances global competitiveness. Intel supports tax provisions like the Foreign Derived Intangible Income (FDII) that encourage U.S.-based manufacturing and innovation. The FDII is a part of a balanced system that discourages abusive tax practices and allows companies to effectively operate and compete globally. We support the maintenance and strengthening of tax incentives for U.S. investments such as FDII.

Minimize double taxation

The U.S. currently has tax treaties with 67 countries and has several treaties or amendments pending approval before the U.S. Senate. The negotiation and ratification of tax treaties prevent countries from taxing the same income twice and strengthens international coordination of tax laws. The U.S. government should continue to pursue mechanisms that eliminate double taxation and ease compliance burdens. These mechanisms include establishing clear lines of communication and coordination among tax administrators. We support good global tax administration through continued investment in our U.S. tax treaty network.

Transparency with Tax Authorities

The Organization for Economic Cooperation and Development (OECD) developed a country-by-country reporting system in which the U.S. government (and thereby U.S. taxpayers) participates. This reporting process was developed in part to aid tax authorities in their audit selection processes. Under the OECD agreement, this reporting information is kept with tax authorities who have the tax expertise to understand and assess this business-sensitive tax information. Intel supports the business information provided as part of the country-by-country reporting system remaining exclusively with government tax authorities.

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Ideas and perspectives promoting a thriving innovation economy from Intel’s public policy team.