North Carolina House passes tax breaks for $1B Apple investment

Apple Computers has showed interest in building a massive $1 billion data center in North Carolina.

Today, the North Carolina House voted in favor (81 to 31) of a bill that would grant up to $46 million to Apple in tax breaks over the next ten years.

The bill includes various provisions for Apple to get the breaks. Apple would have to provide health insurance, give up other state benefits, and would have to build the facility in one of the poorest counties. Additionally, Apple would have to also reach its $1 billion investment within nine years.

North Carolina in the past has changed existing laws to provide cash incentives to companies making significant investments.

North Carolina provided $260 million in breaks for Google, and in 2004 agreed to provide $280+ million in breaks for Dell. In 2004, Dell built the Winston-Salem plant in NC after the local governments agreed to provide $280 million in breaks over time assuming the plant would employ 1,700 people by the end of September 2010. The plant currently employees just over 1,400 people.

Opponents of the current bill argue existing laws should not be changed for a single company just because it has enough money. Republic Johnathan Ryhne said today the bill “amounts to selling ourselves,” and added “What this bill says is if somebody brings us enough money we’ll change the law for them,”

Proponents favor the breaks citing much needed longer-term economic benefits. Current parts of North Carolina are experiencing double digit unemployment rates, while aggregately the state last had 4% unemployment according to the U.S. Department of Labour in April 2009.


tag TAGS: , , , ,
Short URL: http://business2press.com?p=3401
Recommended:
b2p Ensure that you follow us on Twitter and Like us on Facebook
Hercules holds a B.Comm Finance from Ryerson University in Toronto, Canada. He is a Chartered Financial Analyst (CFA) level 3 candidate. He was previously a contributor at FiLife, a finance website owned by Dow Jones and IAC. Write to hercules@business2press.com
checkmark
We are perfectly committed to the highest ethical and professional codes of conduct and standards in the industry on a firm wide basis. Learn more about us, our contributors, and our governance
b2p
We encourage you to comment. Comments are moderated. Comments that are abusive, off-topic, have marginal substance, or include promotional content will be removed. We cannot facilitate requests to edit or remove comments, or explain moderation decisions

Business 2.0 Press publishes exclusive business tech news and analysis covering start-ups to large-caps from Bay & Wall streets since 2008 from a group of highly knowledgeable industry professionals that abide by the toughest industry codes of conduct and professional standards lightMore

lightAdd value by subscribing (RSS)

logo

StockFractions.com has the most stock ratios for public companies. Get the most comprehensive micro insight on public firms available on the web, all for free.
Stock Fractionsgo

title

Colon cancer is one of the leading causes of death. Irrespective of family history, everyone is exposed to the risk. About 90% of colon cancer cases begin from non-cancerous tumors, polyps, which could form in the large bowel. Screening with a colonoscopy will painlessly remove any polyps hence almost entirely reducing your risk of developing the horrible disease. The good news is that about 90% of colon cancer cases are preventable through a simple (yes, simple) colonoscopy.
Learn moreatom
Public service message from Business 2.0 Press