Apple is planning to build another corporate campus and hire 20,000 workers during the next five years as part of a $350 billion commitment to the U.S. that will be partially financed by an upcoming windfall from the country’s new tax law.
The pledge announced today comes less than a month after Congress approved a sweeping overhaul of the U.S. tax code championed by President Donald Trump that will increase corporate profits. Besides dramatically lowering the standard corporate tax rate, the reforms offer a one-time break on cash being held overseas.
Apple plans to take advantage of that provision to bring back about $252 billion in offshore cash, generating a tax bill of roughly $38 billion. It’s something Apple CEO Tim Cook promised the company would do if it could avoid being taxed at the 35% rate that had been in effect under the previous tax law.
About $75 billion of the $350 billion in U.S. investments will be paid from money that had been overseas, Apple estimates. The company plans to announce the location of a second campus devoted to customer support later this year. Apple didn’t say how big the second campus will be, or how many of the additional 20,000 workers that it plans to hire will be based there.
One thing is certain: Cities from across the U.S. will likely be offering Apple tax breaks and other incentives in an attempt to persuade the company to build its second campus in their towns. That was what happened last year after Amazon announced it would build a second headquarters in North America to expand beyond its current Seattle home.
