“Republican legislators planned to meet Wednesday afternoon to hear details of a state incentives package that would allow Apple to hold onto a portion of the taxes generated by the project,” Fain and Smith report. “‘It’s a done deal,’ one source said, ‘as soon as we pass this bill,'” Fain and Smith report. “Another source hedged, saying something can always come up to derail the deal, particularly until the General Assembly and Gov. Roy Cooper formally sign off on the incentives package. A formal announcement had been scheduled for early June, but that is subject to change due in part to media reports about the negotiations, one source said.”
MacDailyNews Take: An announcement at WWDC 2018 seems to have been the plan – and may still be.
“WRAL News has seen an incentive schedule that initially grants Apple about 56 percent of the employer’s share of withholding taxes that the company would generate in North Carolina for the first six years of the deal. That grows to 90 percent as the total jobs grow after the first six years. Withholding money also would flow into a state account intended to boost rural development,” Fain and Smith report. “At first that would be nearly 19 percent of the withholding amounts, falling to 10 percent. A source involved in the deal put the floor for new jobs at 3,000, but multiple sources said the expectation is between 5,000 and 10,000 jobs long-term… There’s no upfront grant money from the state in the proposed incentives package, the two government sources said. The agreement also includes 30 years of property tax abatements from Wake County, the sources said.”
Apple would initially land in or near Cary, leasing space off Weston Parkway for roughly 1,000 employees, four sources said. The company would build up and transition to 300 acres in the southernmost portion of RTP, all on the Wake County side, government sources said,” Fain and Smith report. “In addition to the initial landing Cary and development in RTP, the company also plans to invest in new infrastructure, likely near Hickory in Catawba County, where it already has a data center. A source who has seen a portion of a presentation made about the Apple project said about $900 million would be spent to build the new data center. Last December, media reports said Apple planned to invest an additional $1 billion in the sprawling Catawba County campus, where it has already invested $4 billion since 2009.”
Read more in the full article here.
MacDailyNews Take: North Carolina legislators would be smart to do whatever it takes to land Apple.
The benefits of having a large corporation in your country or state go far, far beyond corporate taxes or even a total lack thereof. Those employees, who would not exist in your state otherwise, pay taxes – income, energy, property, etc., etc., etc. – and buy everything from food to furniture to vehicles in the local economy (each one of those purchases very likely taxed as well). Those who whine about corporate taxes [and/or tax incentives] cannot see the forest for the trees. — MacDailyNews, July 9, 2013
It also doesn’t hurt NC’s cause that Tim Cook got his MBA at Duke.
Good luck, NC!
Apple quietly explores Northern Virginia for 20,000-employee campus – May 16, 2018
Apple to build new U.S. campus, pay record $38 billion repatriation tax – January 18, 2018
Apple gives employees $2,500 bonuses after President Trump signed the GOP’s Tax Cuts and Jobs Act – January 17, 2018
Looks like Apple is bringing nearly all of its $250 billion foreign cash back home to America – January 17, 2018
Apple plans to add $350 billion to U.S. economy and create over 20,000 new jobs over next 5 years, pay $38 billion in repatriated taxes, the largest ever made – January 17, 2018
North Carolina lawmakers OK tax incentives for Apple Inc. – May 27, 2009
North Carolina lawmakers push to give Apple massive tax break for $1 billion server farm investment – May 23, 2009