Austin to Offer Apple $8.6M Incentive for Campus Expansion

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The city of Austin is ready to approve a US$8.6 million incentive package as part of what could become a $33.5 million deal Texas is offering Apple to expand the company’s offices and employee base in the city. If the deal comes together, Apple will add an additional 3,600 jobs to its local workforce.

Apple campus expansion coming to AustinApple campus expansion coming to Austin

Apple already employs some 3,100 people in the Austin area, although it has been looking to add even more workers.

The incentives to convince Apple to double the size of its Austin campus will come over a ten year period as part of the Texas Enterprise Fund program. So far, the state has committed to invest $21 million.

Approval of the incentives looks likely, especially since Apple has told the state that it will have to look elsewhere for its expansion without the deal, according to the Phoenix Business Journal.

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Very ambivalent on this.

Sure it’s great that Apple is investing in the US. Glad to see the 3600 jobs added. That’s all fine and good.

OTOH I have serious concerns with government throwing public money at private corporations to get them to do something. Sure I know that’s the way it’s done now. Sure I know the arguments about how the municipality gets its investment back in the form of an increased tax base. I’ve heard all that. I seriously doubt if it’s actually true. I know Minnesota never got the money back it gave NorthWest Airlines for a Maintenance Base on the Range. I’m also concerned that these bribes from municipalities will distort the decision making process. In this case I suspect Apple would have done this expansion anyway, making these incentives unnecessary. In other cases I can see a company deciding to expand or move to location X because of the incentives, when X is not the best place for the company.

In the long run I’m not sure these government incentives are good for government or the company. The public or the shareholders.


I concur, geoduck. It’s true for Apple as it is for anyone else—though (taking a side road here) it does annoy me much more so with pro sports teams threatening to pull out from a city and go somewhere else if they don’t get the most updated and ooh-ahh facilities. I doubt my home Miami’s the only municipality to have been held hostage by NFL, NBA, and whatever other owners.

The pattern’s pretty well entrenched.

Separate from any possible financial net gains, it does give Texas, especially Austin, some seriously good PR, making them much more attractive to professionals all around.


For $8-9 million, I’d pass.. Ever been to Austin? Unless it’s only the second place you’ve been to in your life, then maybe, but otherwise you’d do better heading further west…

Austin is where bubba lives and he will be trying to turn you into bubba on your second day there…. I’d pass.

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