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Travis County, Texas, approves incentives for Apple campus

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“The Austin Statesman” reports that Apple could get a 65% discount on its Travis County, Texas, tax bill for 10 years without hiring a single county resident to work at its planned 3,635-employee campus, according to an incentive deal the county approved Tuesday.

In a previous meeting on April 3, Travis County Commissioners Court members had said the technology giant would have to promise to hire a percentage of “economically disadvantaged” Travis County residents to get an 80% tax discount. But negotiations over the past two weeks led to a deal, presented to the commissioners Tuesday, that outlined no such requirements for hiring, says the “Statesman.”

The court voted 4-1 to approve the estimated total of US$6 million to $7 million in tax rebates over 15 years. Read more at http://macte.ch/ATU30 .

Earlier this month Gov. Rick Perry today announced that Apple will expand its presence in Texas with an US$304 million investment in a new campus in Austin that will create more than 3,600 new jobs.

The new campus will more than double the size of Apple’s workforce in Texas over the next decade, supporting the company’s growing operations in the Americas with expanded customer support, sales and accounting functions for the region. In exchange for Apple’s commitment to create these new jobs in Texas, the state has offered Apple an investment of $21 million over ten years through the Texas Enterprise Fund (TEF).

“Apple is known for its bold innovation and game-changing designs, and the expansion of their Austin facility adds to the growing list of visionary high-tech companies that have found that Texas’ economic climate is a perfect fit for their future, thanks to our low taxes, reasonable and predictable regulations, fair legal system and skilled workforce” Gov. Perry said. “Investments like this further Texas’ potential to become the nation’s next high-tech hub.”

The project is supported by an investment from the TEF, which offers companies incentives to invest in Texas. When completed, it will be one of the largest job creation projects in TEF history, and one of the largest capital investments by a TEF recipient. The agreement is contingent upon the finalization of contracts and a local incentive agreement with the City of Austin and Travis County.

The Legislature created the TEF in 2003 and re-appropriated funding in 2005, 2007, 2009 and 2011 to help ensure the growth of Texas businesses and create more jobs throughout the state. TEF projects must be approved by the governor, lieutenant governor and speaker of the House. The fund has since become one of the state’s most competitive tools to recruit and bolster business. To date, the TEF has invested more than $443.4 million and closed the deal on projects generating more than 62,000 new jobs and more than $15.4 billion in capital investment in the state.

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