Reno City Council unanimously approves 79% tax break for Apple data center

“The Reno City Council on Wednesday unanimously approved tax breaks to coax Apple Inc. to open two facilities in northern Nevada as part of a $1 billion investment over 10 years,” The Associated Press reports.

“The City Council agreed to the city’s portion of a deal that includes $89 million in county, city and state tax abatements,” AP reports. “Analysts say that’s a 79 percent reduction in Apple’s tax burden.”

“The data center would eventually employ up to 41 full-time employees and 200 long-term contract employees,” AP reports. “Construction is estimated to create 580 temporary jobs… Analysts predict Project Jonathan would generate $343 million in economic activity over the next decade.”

Read more in the full article here.

The Reno Gazette-Journal reports, “Steve Hill of the Nevada Office on Economic Development said the tax breaks are critical for Nevada to compete with other potential Apple sites, including sales-tax-free Oregon, where the company bought 160 acres earlier this year. ‘They’ve got lots of options,’ Hill said. ‘The Prineville, Ore., area remains more competitive than Northern Nevada.'”

“Washoe County commissioners signed off on their end of the bargain Tuesday, which gives Apple an 85 percent break on its personal property taxes. The City Council will decide whether to pledge 75 percent of its share of sales taxes to the company for the downtown business center,” The Reno Gazette-Journal reports. “Hill said the project will go through a monthlong approval process with the governor’s economic development office, and if all goes as planned, construction could begin as early as August.”

Read more in the full article here.

MacDailyNews Take: Congrats, Reno, Washoe County, and Nevada! Full steam ahead!

Related articles:
Apple confirms Reno, Nevada as the site of its next U.S. data center pending tax break deals – June 26, 2012
Travis County approves tax incentives for Apple’s Austin campus expansion – May 2, 2012
Apple gets 15-year property tax exemption for $250 million data center in Prineville, Oregon – April 20, 2012
Apple confirms plans for Prineville, Oregon data center; deal signed after state senate passed tax legislation – February 22, 2012
Apple lobbies Obama for tax holiday, wants to bring overseas bounty home – August 24, 2011
U.S Senate Democrat Schumer allies with Apple, other multinationals on repatriation tax talks – June 21, 2011
Governor signs tax break, Apple confirms it will build NC data center, investing at least $1 billion – June 3, 2009
North Carolina Senate approves tax law change for Apple Inc. in 40-8 vote – June 2, 2009
North Carolina lawmakers OK tax incentives for Apple Inc. – May 27, 2009


  1. Apple is building data centers in the middle of the desert because of ample supply of sunshine for enough hours in the day for solar powered electric generation which is located far enough from earth tremors to isolate itself from geographical occurrences.

    Also Braeburn Inc, Apple’s investment arm for its cash holdings is located in Reno, Nevada, which can divert some of that cash into the $1 billion cost it takes to build the data center.

    1. It is also very close to ski resorts and at over 4000 ft elevation is bound to get snow in winter. Apple will have to hire some to shovel snow of the solar panels in the winter or maybe they will integrate heating units to melt the snow.
      Reno is on interstate 80 so it probably right next to the Internet cable lines that go across the Sierras.

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