Apple could receive up to 20 years in tax breaks for solar-powered Arizona data center
Apple's forthcoming "global command center" for its online operations in Mesa, Ariz., could be the beneficiary of up to 20 years' worth of tax breaks, thanks to new rules proposed by the state legislature.
Republican Sen. Jeff Dial believes Arizona's laws, which he hopes to clarify with a new bill, will allow Apple to qualify for at least 10 years' worth of equipment tax breaks, according to the Phoenix Business Journal. Some benefits could stretch out to 20 years, he said, falling under the category of "sustainable redevelopment projects."
Legislators are also reportedly adjusting the energy tax breaks that were previously granted to Apple, when the facility was originally intended for producing sapphire. Those credits were announced in 2013 when then-Governor Jan Brewer touted Apple's presence as a major economic driver for the state of Arizona.
Local government has further incentivized the use of land owned by Apple and others in Mesa by designating it as a foreign trade zone. That was said to shave as much as 70 percent off the company's annual property tax bill.
It's been a long, strange trip for Apple's Mesa, Ariz., operations, originally intended to be operated by GT Advanced Technologies for sapphire production. But after GTAT filed for bankruptcy, Apple vowed to repurpose the facilities it had built there.
Those plans were revealed earlier this month when Apple announced it will build a $2 billion green data center in Mesa. The facility will employ 150 people full-time and will serve as the control center for Apple's four other U.S. based data operations.
Apple's data "global command center" will be powered by 100 percent renewable energy, most of which will come from a new local solar farm. Construction on the facility is expected to start by late 2016.
In the meantime, the facility still houses furnaces purchased by GTAT and Apple for creating sapphire. Those furnaces are being liquidated as part of GTAT's bankruptcy proceedings.
Republican Sen. Jeff Dial believes Arizona's laws, which he hopes to clarify with a new bill, will allow Apple to qualify for at least 10 years' worth of equipment tax breaks, according to the Phoenix Business Journal. Some benefits could stretch out to 20 years, he said, falling under the category of "sustainable redevelopment projects."
Legislators are also reportedly adjusting the energy tax breaks that were previously granted to Apple, when the facility was originally intended for producing sapphire. Those credits were announced in 2013 when then-Governor Jan Brewer touted Apple's presence as a major economic driver for the state of Arizona.
Local government has further incentivized the use of land owned by Apple and others in Mesa by designating it as a foreign trade zone. That was said to shave as much as 70 percent off the company's annual property tax bill.
It's been a long, strange trip for Apple's Mesa, Ariz., operations, originally intended to be operated by GT Advanced Technologies for sapphire production. But after GTAT filed for bankruptcy, Apple vowed to repurpose the facilities it had built there.
Those plans were revealed earlier this month when Apple announced it will build a $2 billion green data center in Mesa. The facility will employ 150 people full-time and will serve as the control center for Apple's four other U.S. based data operations.
Apple's data "global command center" will be powered by 100 percent renewable energy, most of which will come from a new local solar farm. Construction on the facility is expected to start by late 2016.
In the meantime, the facility still houses furnaces purchased by GTAT and Apple for creating sapphire. Those furnaces are being liquidated as part of GTAT's bankruptcy proceedings.
Comments
As an Apple shareholder, I like it. As a taxpayer, I'm glad that I don't live in Arizona and have to make up for the loss out of my pocket!
Excuse me? Loss? you counting eggs you don't have? Apple coming there ADDs to the consumer tax based and still adds to the Arizona state tax base..
Always confuses me when people count the 2 hens in the bush, what they don't have, as a loss, over what they do have..
If everyone used the eggs that they have very few people would own a house, a car, or even a smartphone.
If Arizona wasn't so tax-friendly this facility would simply be in Texas. No loss out of Arizona tax payers' pocket in either case.
Exactly, some tax money is better than none plus the added income tax.
It's just liberal math
Still, don't hate the player... etc.
Excuse me? Loss? you counting eggs you don't have? Apple coming there ADDs to the consumer tax based and still adds to the Arizona state tax base..
Always confuses me when people count the 2 hens in the bush, what they don't have, as a loss, over what they do have..
A certain segment of the population have been voluntarily brainwashed by this notion of “fair share” and that corporations are evil and a detriment to society. The rich have what they have because they are evil and exploitative. Ironically many of these people are of Judeo-Christian background and are always squawking about social and economic justice. But one of the Ten Commandments says Thou Shalt Not Covet They Neighbors Goods. Apparently that doesn’t apply to the 1% whose goods they are so anxious to confiscate in the name of fairness.
So where will the state make up the tax revenue that Apple should have been paying and would have? From Arizona residents of course. They also chose to move and work there, yet received no tax breaks to do so.
The state doesn't have to "make up" for something they never had to begin with.
It's just liberal math
Ever smaller government is the conservative nirvana as is ever smaller tax burdens, so what's not to love?
The state doesn't have to "make up" for something they never had to begin with.
If the state has to build and maintain the roads, sewer/water, and other facilities to support the Apple plant, and the cost of that is less than the tax revenue of the new employees, then this may be a bad move for the state. Of course, if the added revenue is greater than the cost, it is a win for the state.
I'm generally in favor of tax breaks, but a lot of times it is not clear if cities or states really do a sensible cost/benefit analysis or if they are guided by a knee-jerk "Taxes bad! Growth good!" or a "Taxes good! Companies bad!" mentality.
If the state has to build and maintain the roads, sewer/water, and other facilities to support the Apple plant, and the cost of that is less than the tax revenue of the new employees, then this may be a bad move for the state. Of course, if the added revenue is greater than the cost, it is a win for the state.
I'm generally in favor of tax breaks, but a lot of times it is not clear if cities or states really do a sensible cost/benefit analysis or if they are guided by a knee-jerk "Taxes bad! Growth good!" or a "Taxes good! Companies bad!" mentality.
"a sensible cost/benefit analysis" Certainly largely absent from their approach to sports cathedrals.
From the first paragraph:
"Apple's forthcoming "global command center" for its online operations in Mesa, Ariz., could be the beneficiary of up to 20 years' worth of tax breaks, thanks to new rules proposed by the state legislature."
Apple was already committed. They weren't going to Texas and do not need another tax break to convince them to stay. :no:
Just an example: Apple received $370 million in tax breaks from North Carolina for creating 50 jobs. Does that seem like a big win for North Carolina taxpayers? Or more like a meaningless giveaway?
There are perhaps other considerations such as encouraging Apple to expand their operations in the state. Arizona could be wanting to build up their technology corridor and attract high paying jobs which would benefit home construction, and other service industries. All of the major tech companies tend to group their data centers and R&D facilities near one another for obvious reasons. Arizona is simply reducing any barriers for other companies to move there.