NC Pushes for $300M USD Apple Tax Break in Hopes of Economic Boost

From DailyTech: As one of the most financially successful companies in this recession economy, Apple makes a popular target for taxation. However, recession stricken North Carolina plans to go the opposite route, hoping to lure a huge Apple server farm into the state in exchange for a massive tax break that could total as much as $300M USD over its lifetime.

Both Apple and state officials declined comment, but a state lawmaker speaking on conditions of anonymity revealed that the state is in talks with Apple over a facility to be built in either Catawba or Cleveland County, an investment that could total as much as $1B USD by the time construction completes.

In lieu of the proposed deal, NC's House Finance Committee approved changes to the way in which corporate income taxes are calculated. The state plans to give breaks to companies who only make a small share of their total nationwide sales in the state, but have a large portion of their payroll and property in the state. The proposed cuts do come with some strict conditions; the companies must be located in one of North Carolina's poorest counties, provide health insurance, meet a wage standard, and forego other state grants or tax breaks.

Rep. Paul Luebke, D-Durham praised the measure, stating, "The bill ensures it's going to go to an area of high unemployment. This reflects concerns many of us have had about economic development policy, that priority should be given to the neediest counties."

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