North Carolina’s multi-million dollar tax incentive for Apple to build campus and engineering center in state is “worst economic development deal of the year” for 2021, says report of the Center for Economic Responsibility.
State leaders announced the deal with Apple in April to build a 1,000,000 square foot facility in Research Triangle Park that they say would create at least 3,000 jobs and bring in $ 1.5 billion per year in economic benefits to the state. However, analysts at CEA said the economic benefits were inflated and Apple would have chosen North Carolina for its new campus without the company’s document.
“A billion dollars is a lot of money for the taxpayers and communities of North Carolina because it is a billion dollars in public services that are unfunded,” said ACE president , John Mozena. “But for a company like Apple, which grossed over $ 1 billion in revenue a day last year, that’s not enough money to move the needle on a major site selection decision. “
Apple chose North Carolina for its new campus after three years of deliberations. The company’s final choice fell on Ohio and North Carolina. North Carolina has agreed to compensate Apple for $ 846 million over the next 39 years. Authorities in Wake County, where the campus will be built, have offered a 50% property tax rebate over the next 30 years.
Apple has also agreed to create a $ 100 million fund to support school and community initiatives in North Carolina and to contribute more than $ 110 million for broadband and infrastructure projects in rural areas. On Monday, Apple became the first publicly traded company to be worth $ 3 trillion.
CEA argues that because of North Carolina’s high-ranking business climate and Research Triangle Park’s reputation as a technology hub, Ohio didn’t stand a chance against Tar Heel State.
The Raleigh metro area ranked seventh in the country for the density of its technology workforce by the Computing Technology Industry Association in 2021, while no metro area in Ohio is ranked higher than the 36th. Governor Roy Cooper said Apple was the 11th company to announce new jobs in North Carolina in the past two months. The state was ranked No. 1 for its business climate by Site Selection magazine in 2021 for the second year in a row.
“Few, if any, independent rankings place an Ohio metro area on par with the Research Triangle when it comes to key factors in technology industry site selection,” CEA said. “To independent observers, this looks less like actual competition and more like something bureaucrats have had to say to nominally comply with state laws designed to limit the waste of corporate welfare.”
The CEA also said the economic forecast was “ridiculous”. CEA estimates that for Apple to meet its goal of $ 1.5 billion in economic benefits for North Carolina per year, each of the 3,000 employees at Apple’s Research Triangle plant would need to generate $ 500,000 in GDP. per capita, nine times more productive than the current workforce. It also exceeds the GDP of Silicon Valley, which generated $ 128,000 in 2017.