mcloudyn.png
Friday August 23rd, 2019 5:11AM

Apple gets $208M in tax breaks to build Iowa data center

By The Associated Press

DES MOINES, Iowa (AP) — Iowa approved a deal Thursday to give Apple $208 million in state and local tax breaks to build two data storage centers near Des Moines and the promise to create 50 jobs.

The deal approved by the Iowa Economic Development Authority includes a refund of $19.6 million in state sale taxes for Apple Inc. and a $188 million break on property taxes from Waukee, a booming suburb bordering Des Moines.

In addition to the promised 50 jobs, Apple has agreed to buy 2,000 acres of land for the $1.4 billion project, enough to allow for future development, said Debi Durham, the state's economic development director.

Apple CEO Tim Cook and Republican Gov. Kim Reynolds were expected to discuss the deal at a news conference later Thursday.

Critics were quick to cast the deal as bad for the public.

"It's a net fiscal loss that it's a straightforward giveaway in the economy to a company that's extraordinarily wealthy and it makes no sense from an economist's point of view. It only makes sense from a politician's point of view," said David Swenson, an economist at Iowa State University and critic of such large economic development project tax breaks.

The economic development board's chairman, Chris Murray, though said such projects bring people who build homes, generating tax revenue and causing other businesses to look into moving to Iowa.

"They say we should go to Iowa because we have these epicenters there. And as you look at the age demographics and the growth of Iowa, I think it's really difficult to challenge the fact there are ancillary growth benefits from making an investment like this," he said.

Google, Facebook and Microsoft have already built billion-dollar data centers in Iowa. Like Apple, they were drawn to the state by its generous tax breaks, wind-generated electricity and relative security from natural disasters that could disrupt service.

___

Follow David Pitt on Twitter at https://twitter.com/DavePitt

  • Associated Categories: U.S. News, Associated Press (AP), AP National News, Top U.S. News short headlines, AP Business, AP Business - Economy, AP Technology News
© Copyright 2019 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Dutch police detain suspect in concert terror threat
Alerted by a detailed tip from Spanish colleagues, Dutch police have arrested a 22-year-old man and said he was suspected of preparing an attack on a concert by an American rock band
11:57AM ( 4 minutes ago )
Charlottesville council meets privately on personnel matters
Charlottesville residents are getting a chance to talk with city officials about a white nationalist rally earlier this month that devolved into deadly violence
11:45AM ( 16 minutes ago )
APNewsBreak: Zinke won't eliminate any national monuments
Interior Secretary Ryan Zinke said he's recommending that none of 27 national monuments carved from wilderness and ocean and under review by the Trump administration be eliminated.
11:44AM ( 17 minutes ago )
Associated Press (AP)
Navy ends sea search for McCain missing; confirms 1 death
The U.S. Navy has called off the search at sea for sailors missing after a collision between a destroyer and an oil tanker, and confirmed the identity of one body
11:02AM ( 59 minutes ago )
Danish police search for dead Swedish journalist's clothes
Danish police say the headless torso of Swedish reporter Kim Wall, who is believed to have died on a submarine that sank, was found naked and they are now also searching for her clothes
10:55AM ( 1 hour ago )
Trump attacks Republican leaders over debt ceiling
Trump attacks Republican congressional leaders over debt ceiling negotiations
10:52AM ( 1 hour ago )
AP Business
Former CIA agent wants to buy Twitter to kick Trump off
Former undercover CIA agent Valerie Plame Wilson is looking to crowdfund enough money to buy Twitter so President Donald Trump can't use it
7:36PM ( 16 hours ago )
SpaceX unveils sleek, white spacesuit for astronaut travel
SpaceX has unveiled a sleek white spacesuit for its Dragon manned flights, coming up next year
6:13PM ( 17 hours ago )
Regulators, Whole Foods shareholders approve Amazon deal
Whole Foods shareholders say yes to Amazon's $13.7 billion takeover bid of the organic grocer
5:15PM ( 18 hours ago )
AP Technology News
Dutch police detain suspect in concert terror threat
Alerted by a detailed tip from Spanish colleagues, Dutch police have arrested a 22-year-old man and said he was suspected of preparing an attack on a concert by an American rock band
11:57AM ( 4 minutes ago )
Charlottesville council meets privately on personnel matters
Charlottesville residents are getting a chance to talk with city officials about a white nationalist rally earlier this month that devolved into deadly violence
11:45AM ( 17 minutes ago )
APNewsBreak: Zinke won't eliminate any national monuments
Interior Secretary Ryan Zinke said he's recommending that none of 27 national monuments carved from wilderness and ocean and under review by the Trump administration be eliminated.
11:44AM ( 18 minutes ago )
Where's the winner? Lottery error adds intrigue to Powerball
A mistake by the Massachusetts State Lottery has injected a little extra drama into the national $758.7 million Powerball drawing
11:27AM ( 34 minutes ago )
Pakistan rejects Trump's allegation of harboring militants
Pakistani leaders reject Trump's allegation that Islamabad is harboring militants who battle US forces in Afghanistan
11:23AM ( 38 minutes ago )