Apple Follows Amazon in Announcing 2nd Corporate Campus
Triggered by the tax bill’s one-time repatriation provision, Apple will bring back record profits long piling up abroad and invest $350 billion at home.
Not to be outdone by the monster Amazon HQ2 announcement last year, 2018 started out with a bang when Apple announced yesterday that it will also be building a second corporate headquarters somewhere in the U.S. The economic development community promptly swooned from a similar rush of excitement at the potential of locating such a substantial and difference-making investment. Local leaders and city staff immediately leapt into action, many dusting off the same due diligence materials they just finished for the great Amazon site selection competition.
Apple’s new domestic investment plan tips it’s proverbial cap to the new tax bill code signed into law by President Trump at the end of 2017. The generational tax reform lowered corporate tax rates tremendously and opened a one-time break on profits U.S. companies had piled up overseas.
Taking advantage of the opportunity, Apple will repatriate $250 billion back to the U.S. and pay $38 billion in taxes. “A payment of that size would likely be the largest of its kind ever made,” Apple points out in its announcement.
Apple’s statement also emphasized its “commitment to support the American economy and its workforce,” which would be
“Apple is a success story that could only have happened in America, and we are proud to build on our long history of support for the US economy,” CEO Tim Cook, added in a statement. “We believe deeply in the power of American ingenuity, and we are focusing our investments in areas where we can have a direct impact on job creation and job preparedness. We have a deep sense of responsibility to give back to our country and the people who help make our success possible.”
At this time, there is no indication as to Apple’s specific site selection criteria for its new campus location. There is speculation, however, that Apple will do an Amazon and open a Request of Proposal process to allow communities to compete for Apple’s consideration. Fresh off one of the most frenzied and furious site selection competitions ever seen for Amazon HQ2, many communities are hardened to economic development battle and are equipped and ready to renew the fight for the next future-making facility.
Apple joins a legion of other companies, including Amazon, investing heavily in the U.S. in recent years, including 10's of billions of planned and pledged investments by foreign companies.