Apple was granted a four-year extension to retain an incentive deal worth up to $845 million in North Carolina. Here are the details.
Exception was granted under a recent disaster relief bill
In 2021, North Carolina granted Apple up to $845 million in tax benefits in exchange for a $1 billion investment in local projects, which included a new, $552 million corporate campus in Research Triangle Park by the end of 2031.
As of June last year, construction had not yet begun. And as reported by The News & Observer at the time, Apple officially confirmed that it would pause its plans to build the new campus, as it sought to extend the construction timeline.
From the original report:
“The company has informed the state Department of Commerce it seeks to suspend the project for four years, according to a source familiar with the site. In a statement Monday, Apple said it is still ‘looking forward to developing our new campus in the coming years’ and noted it has added around 600 positions in the Raleigh area since the company announced its RTP campus in April 2021.”
And
“While the company has more than six years to complete its campus, its hiring clock began last year with an obligation to have added a minimum of 126 local workers. This jobs target increases to 378 total positions by the end of 2024 and increases up to 2,700 jobs in 2032.”
Today, The Herald reported that North Carolina granted Apple’s request to “postpone its hiring and investment goals,” agreeing to a four-year extension under a recently enacted provision that allows transformative grants to be reset:
“On Tuesday, the Economic Investment Committee approved the company’s request to delay the grant requirements four years. Until recently, North Carolina could only extend a job development investment grant agreement up to 24 months if a company misses its hiring and spending goals. Then in June, the state included a law within a broad disaster relief and budgetary bill that allows transformative grants to be reset if the recipient employer already has at least 1,000 employees in the state and hasn’t yet received any payments through its initial incentive.”
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