Apple

After weeks of speculation, Apple on Wednesday confirmed its plans to build a server farm facility in North Carolina. Gov. Bev Perdue officially welcomed Apple to North Carolina after signing a bill giving the company a state tax credit worth $46 million.

"We're looking forward to building a new data center in North Carolina, and we appreciate the efforts of Gov. Perdue and state lawmakers who helped make it possible," Apple representative Susan Lundgren told CNET. "Our teams are getting started right away to acquire a site for the data center, and we plan to begin construction soon."

Changes in the tax laws were not without opponents. Last week when the House voted in favor of the tax credit by a vote of 80-34, House Minority Leader Rep. Paul Stam was clearly upset with the incentives.

"They're playing us," Stam said. "And they're going to keep playing us as long as you agree to be played. They'll either come or they won't come, but whether they come I can virtually assure you it will not depend upon whether you pass this bill."

North Carolina said the Apple server farm will have about 50 full-time employees. One of the regulations that Apple has to follow is that the average wage in the facility exceed the wage standard in the county where it's located.

Overall, when all job types (like maintenance) are factored in, the state expects the Apple facility to create up to 250 jobs. The Department of Commerce estimates that with a $1 billion investment, more than 3,000 jobs could be created in the regional economy.

"North Carolina continues to be a prime location for growing and expanding global technology companies," said Perdue in a prepared release. "We welcome Apple to North Carolina and look forward to working with the company as it begins providing a significant economic boost to local communities and the state."

The site has not been finalized yet, but Catawba and Cleveland counties are said to be potential sites for the facility.

Lawmakers in North Carolina on Wednesday voted in favor of proposed changes to the state's tax laws, clearing the way for large investments from companies like Apple.

The House passed the bill 80-34, according to a report by the Charlotte Observer. While it was a healthy majority, some lawmakers protested vehemently about being forced to offer huge tax incentives to big businesses.

The bill, modified by the House, is set to go back to the state Senate on Thursday for a vote.

As reported on Tuesday, North Carolina is hoping to lure Apple by offering the company $46 million in tax breaks. In return, Apple would invest $1 billion to build a server farm in one of the state's poorest areas--Catawba and Cleveland counties are said to be potential sites for investment.

The Associated Press reported that House Minority Leader Rep. Paul Stam (R-Wake) was particularly upset with the proposed incentives. "They're playing us," Stam said. "And they're going to keep playing us as long as you agree to be played. They'll either come or they won't come, but whether they come I can virtually assure you it will not depend upon whether you pass this bill."

This isn't the first time North Carolina has offered tax breaks to large companies. In 2007, Google signed a deal worth $600 million to open a server farm in the state for a promised $260 million worth of incentives over 30 years.

Update at 8:25 a.m. PDT: Further attribution has been added.

North Carolina officials are pushing to change state tax law in hopes of attracting new companies, specifically Apple, according to an Associated Press report.

The state is pursuing a $1 billion investment from Apple over a nine-year period to build a server farm, the AP said, citing an anonymous state official. However, the law must be changed to give state officials the ability to attract Apple through tax breaks and other incentives.

The tax breaks offered to Apple would be worth an estimated $46 million over the life of the deal, the AP reported. But Apple must jump a few hurdles itself. The company would have to meet its $1 billion investment target in order to get the tax breaks, the AP said. Apple would also have to locate the server farm in an area of the state with high unemployment--Catawba and Cleveland counties are said to be potential sites for investment.

Offering tax incentives is not a new practice for any state government, but North Carolina does have experience in attracting high-tech companies. Google signed a deal in 2007 worth $600 million to open a server farm in the state for a promised $260 million worth of incentives over 30 years, the AP reported.

The proposed tax changes that could potentially bring Apple to North Carolina are scheduled for a vote Tuesday.