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North Carolina votes in favor of Apple handout

updated 04:15 pm EDT, Wed May 27, 2009

N. Carolina votes Apple

The state House of North Carolina has voted 81 to 31 for a bill handing out tax breaks to Apple, the Associated Press writes. Although the results are only preliminary, they may suggest the outcome of the final vote, scheduled to be held before Wednesday's end. If successful, the bill will divert $46 million of taxpayers' money towards a 10-year break for Apple.

In exchange Apple is expected to found a massive server farm in the state, bringing with it a minimum of $1 billion in investments after a period of nine years. The company is also being asked to provide health insurance, meet a base wage standard, and eschew any other grants or tax breaks. The farm can also be located only in one of the state's poorer counties; Catawba and Cleveland are believed to be frontrunners.

Representatives fighting the the bill, such as House minority leader Paul Stam, note that it can be seen as undue corporate influence, allowing manipulation of the law with the promise of money and jobs. Many companies are willing to move to North Carolina without any special handouts, says Stam, who observes that the state ended up overbidding with tax breaks for Dell and Google.

Rep. Jonathan Rhyne is one of Stam's supporters. "What this bill says is if somebody brings us enough money we'll change the law for them," he comments.

Those in favor of the bill counter with the state's unemployment rate, which is in the double digits as a whole and as much as 16 percent in four counties. "We want the jobs," says Rep. Pryor Gibson. "As long as we have to do this, let's try to do this the best way we can."

by MacNN Staff



  1. RetiredMidn

    Joined: Dec 1969


    Oh, please

    North Carolina is not "diverting taxpayer's money" to Apple. Over 10 years, if Apple lives up to its commitments, Apple will pay $46 million less in taxes than it otherwise would have. In return, North Carolina expects to make more than that in other taxes that they would not have collected if Apple built the data center elsewhere. This is not a "handout".

  1. wings_rfs

    Joined: Dec 1969


    Now THAT is ...

    truly something you could call an Apple Tax.

    -NC Resident

  1. starwarrior

    Joined: Dec 1969



    They are building a nest for their acquisition of: "Yahoo Would Sell Search Unit for ‘Boatloads of Money’"

  1. testudo

    Joined: Dec 1969


    Re: Oh please

    if Apple lives up to its commitments, Apple will pay $46 million less in taxes than it otherwise would have.

    Actually they would pay who knows how much than they would have, because without the deal, there's no way they would build it in NC.

    In return, North Carolina expects to make more than that in other taxes

    What other taxes? They aren't going to make much in terms of income taxes, as the workforce there is small. Most will probably come from the surrounding area, so those people will just be taken off unemployment rolls, at most. And the counties that they're putting the thing in will get their property taxes (assuming NC does county property tax), but doubt they'll get much in the way of the workers, who'll either just commute from where they live or won't want to move to a 'poor' county.

    Oh, I know, they'll get taxes off the electric bills they'll have to pay...

  1. MacnnGregor

    Joined: Dec 1969


    Govt. acting like Busines

    I usually don't like specific tax cuts for corporations like this. We did this in Oregon and Intel came in to become the biggest employer in the state. So taxes went down for some, had to be offset by others and now Intel is the number one layoff machine in the state.

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