Business news : Nike Seeks Tax Guarantees to Expansion

Nike Inc. plans to expand its operations in Oregon and hire hundreds of workers but wants the the state’s government to promise it won't change the state tax code. In response to Nike’s request, Oregon Gov. John Kitzhaber called a special session for Dec. 14. Nike told Kitzhaber that other states have been aggressively courting the company.

Nike stated it would would create at least 500 jobs and $150 million in capital investment over five years as part of its expansion plan in the state.

The Legislature is due to meet in its regular annual session beginning Jan. 14, but Kitzhaber said Nike needed certainty sooner.

"Getting Oregonians back to work is my top priority," Kitzhaber said at a news conference, according to Portland Business Journal.

Kitzhaber said that Nike’s expansion would represent $2 billion in investment per year and could create as many as 12,000 jobs by 2020. Construction would generate about 2,900 jobs and $440 million, he said. Nike’s employment in Oregon has grown 60 percent since 2007 with an average annual compensation of over $100,000, about double state and regional averages.

The proposed legislation would allow any company planning an investment that would result in at least 500 jobs and $150 million in capital investment over five years to enable them to lock in the state’s corporate tax rates over a set period of time.

The governor hopes legislators will pass the legislation this Friday.

“They’re prepared to commit to a very serious long-term investment if we can give them certainty on the investment climate during that time,” said Kitzhaber, according to the Oregonian.

Nike built its current headquarters campus in Beaverton in 1990.

( SportsOneSource Media )