Apple (AAPL) has announced its plan to spend $1 billion to build a campus in Austin, Texas. Set on 133 acres of land, the new Apple campus will be located less than a mile away from the existing Apple campus in Austin. Apple will become the city’s largest employer with more than 5,000 employees. After new U.S. tax laws were enacted in late 2017, which “prevented Apple from avoiding taxes on international profits,” Apple announced it would invest $30 billion in U.S. facilities – that includes $10 billion in U.S. data centers over the next five years.
The new U.S. tax laws require U.S. companies to pay a tax of between 8 percent and 15.5 percent on overseas earnings made since 1987 if they remain offshore. That’s a hefty one-time charge for a U.S. multinational like Apple which had $129 billion in offshore cash that was not subject to U.S. tax before. However, after making the one-off payment, they’ll be able to bring the money back home without paying an additional 35 to 40 percent tax.