Apple Getting a Cool $10 Million From State Fund for Mesa Manufacturing Facility

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The state incentives for Apple to open a manufacturing facility in Mesa could total more than $10 million.

An Arizona Commerce Authority spokeswoman says there's an agreement for a $10 million grant to Apple from the "Arizona Competes Fund," plus possible grants and tax credits for the company that's actually going to do the manufacturing at the facility, GT Advanced Technologies.

See also:
-Apple to Open Manufacturing Facility in Mesa

This is the deal that was kept secret for some time, which didn't make everyone, namely the Goldwater Institute, happy.

This $10 million grant is a pretty good chunk of the $25 million "Arizona Competes Fund," which the agency has defined as so:
This has also been labeled the "Deal Closing Fund." To qualify, a company will need to achieve certain performance measures, average employees' wages above the county's average wage, and other requirements similar to the existing Job Training program. The Arizona Competes Fund will generate dollars for investment in business projects that stimulate and promote industries that provide stable, high-wage jobs. The program will be funded through increases in corporate income tax withholding, and capped at $25 million.
State budget documents (page three) show that fund gets most of its funding from the state's general fund, through income-tax withholding, but also gets a few million from lottery revenues.

Arizona's had this fund for a few years, although other states (Texas' "Enterprise Fund" comes to mind) have had these things for much longer.

As we've reported earlier, Apple entered a $578 million deal with the other company, GT Advanced Technologies, to produce some sort of "sapphire material," for its products. Neither company explained exactly what's going to be made at the Mesa facility.


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35 comments
wtf...
wtf...

city council got bribed with free ipads!

Necropolis
Necropolis

"The Commerce Authority expects more than $100 million in tax revenue from Apple's investment in five years."

Perhaps someone at the Commerce Authority should have typed "apple tax evasion" into google and read up on all of the investigations around the world into the all the ways apple has avoided paying any taxes. This deal will cost Arizona's tax payers in the end, or Apple would not have agreed to it.  

teknik
teknik

it would be nice if mega $$$ corporations were trying to pay towns to open shop in their neighborhoods but thats not the case and as much as I wish it were the case reality ensues.

as it is Apple is trying to move production stateside and it's an already proven establishment it really seems like a net win for the community.


Flyer9753
Flyer9753 topcommenter

Why is it Republicans claim to hate handouts and welfare and so on, even when to people who actually need it... with all the attached hyperbole....

But have no problem and actually embrace MASSIVE corporate welfare like this to a company that has NO need for it??

F'ing hypocrites

Eleanor_Holguin
Eleanor_Holguin

This type of incentive should be illegal. Apple makes billions of dollars why do the need this???

valleynative
valleynative topcommenter

@Necropolis  

Most of the taxes won't come from Apple, Inc, but from the paychecks of the employees, sales tax from those employee's purchases, property taxes, etc.

PROTECH
PROTECH

@Necropolis Wrong.  The $10 mill they seek to gain is already paid for by taxpayers.  Job creation benefits residents.  By attracting Apple, the tech industry continues to grow here, and that will attract other companies as well.

logicman
logicman

@Flyer9753 It a bet that there will be several high paying jobs for years to come brought to the area.  Go take a drive through Ocotillo and blame that evil corporation Intel for creating that neighborhood.  

valleynative
valleynative topcommenter

@Flyer9753  

"They should be doing something to create jobs".

This is it.  This is just about the only thing the government can do to bring jobs to the state.   If you don't understand that, please don't vote.

 

teknik
teknik

@Flyer9753 dude, they need to fund those handouts from someplace..

Flyer9753
Flyer9753 topcommenter

@logicman @Flyer9753 

No, there will be several high paying positions purchased with MY tax money, not created or brought to the area.


Flyer9753
Flyer9753 topcommenter

@valleynative @Flyer9753 

You quote something I did not say....

Yeah jobs.. bought for the low low price of $10m... so I assume since I am a tax payer and that money was taxpayer money I am going to get a job there? 

Oh... no... I am paying for something else to get a job there.. how long till the plant pays back that $10m to the taxpayers? oh.. never..

This is not creating jobs, this is buying jobs

Don't try to put words in my mouth Valley, you are not smart enough for it.

Eleanor_Holguin
Eleanor_Holguin

@PROTECH I don't have a problem bringing jobs to the State but for tax dollars needed to woo them I have a problem with. 

How many jobs have you created? I'm not going to disrespect you and answer that question. 

Jobs are very important but with people and big corporations come other problems that don't get looked at in advance. 

You don't answer my question and you attacking me because of my opinion is ignorant. 

Eleanor_Holguin
Eleanor_Holguin

@valleynative Why do we have to pay them? If they want to move here they should come because it benefits them not because we pay them to do so. 

valleynative
valleynative topcommenter

@wtf... @valleynative  

They bribed the City Council to get the State Commerce Authority to give them 10 million dollars?

Are they stupid?


Flyer9753
Flyer9753 topcommenter

@logicman @Flyer9753 

Supposedly returned 10 fold to the area... I can argue and show easily over the past 50 years that that is not the case. 

It actually creates a dependency for the area because it's being used incorrectly.

Flyer9753
Flyer9753 topcommenter

@valleynative @Flyer9753 @logicman 

After you tell me why you quoted what you said above in your comment to me, if it was not attempting to quote me.

After all, I did ask first.

Flyer9753
Flyer9753 topcommenter

@valleynative @Flyer9753 

So once again, like usual, rather than answer the question about why you quoted that in a comment to me, you ignore the question since answering it would prove you are lying with your denial.

Gotcha

Thanks for being your predictable lying self VN.

Flyer9753
Flyer9753 topcommenter

@valleynative @Flyer9753 

You indicated it when you quoted them in a comment to me.. 

If not attempting to quote me, then why did you put them there in quotes in a comment to me?

So according to you, those increased tax payments will come my way in the end and I will come out ahead? Cool... so when can I expect those checks with my name on them to arrive.. oh that's right.. it's tax monies so I won't actually see a penny of it.. interesting spin attempt though, fail, but interesting.

valleynative
valleynative topcommenter

@Flyer9753 @valleynative  

Did I claim that you had said those words?  

Yes, you are paying a very small amount for a lot of people to get jobs and pay a lot MORE in taxes so you come out ahead in the end, because the economy will improve.

If you're too stupid to understand that, then don't even try to guess how smart I am.

 

valleynative
valleynative topcommenter

@Eleanor_Holguin @valleynative  

You're misunderstanding the fundamentals here.

Why do some companies and sports teams offer an employee a hiring bonus?  If the person wants to work there, they should take the job because it benefits them, right?

Similarly, the incentives are to make them WANT to come here, rather than going to any of the other states which are all also offering incentives.


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