Subsidy Tracker Individual Entry

Company: 
Nike
Parent Company: 
Nike
Subsidy Source: 
state
Location: 
Oregon
City: 
Beaverton
County: 
Washington
Project Description: 

retention of major sportswear company

Year: 
2012
Major Industry of Parent: 
apparel
Specific Industry of Parent: 
apparel
Subsidy Value: 
$2,021,000,000
Program Name: 
single sales factor
Awarding Agency: 
state legislature
Type of Subsidy: 
MEGADEAL
Number of Jobs or Training Slots: 
500
Capital Investment: 
$150,000,000
Source of Data: 

Good Jobs First estimated the 30-year value of the single sales factor deal using the methodology of the Oregon Center for Public Policy, which calculated Nike's Single Sales Factor savings in 2006. We applied updated figures for Nike's profits and for the state's corporate tax rate. OCPP's calculation is online at: http://www.ocpp.org/2007/ssfexampleNIKE20070129.pdf. The job and investment projections are taken from an agreement between Nike, Inc. and State of Oregon signed on December 19, 2012; available online at: http://www.ocpp.org/media/uploads/documents/2013/20121912NikeAgreement.pdf

Notes: 

In December 2012, the Oregon legislature passed the so-called "Nike bill," which allowed the company to calculate its Oregon taxes based on the single sales factor formula for 30 years. The subsidy estimate is conservative, given that it does not take into account future increases in the company's profits. Overlap with main Subsidy Tracker data: none.

Source Notes: 
If an online information source is not working, check the Tracker inventory page for an updated link.