Google building $600 million data center in Alabama

[JuanHunt]

So, they get $30million in tax abatements over 10 years, roughly $20million in cash, in hopes of them doing $100million in state GDP over the same 10 year period. The Alabama Data Center Incentive Act gives 30 years of abatements which is not mentioned in the story at all. Probably doesnt matter, the state does not reveal the details of these deals, ever, its considered proprietary.
Whats the tax rate on on corporate income? Google uses cost shifting to lower their tax bills to almost zero. Thats what the state will get in return. Does that mean its a bad deal? Maybe, it would take some sophisticated analysis to determine if we would in fact be better off without Google, but thats not how these decisions are made, an announcement with the governor on TV is what drives the process.

By employing strategies known to lawyers as the "Double Irish" and the "Dutch Sandwich," Google cut its taxes by $3.1 billion in the past three years - moving most of its foreign profit through Ireland and the Netherlands to Bermuda. Google's income shifting helped reduce its overseas tax rate to 2.4 percent, the lowest of the top five U.S. technology companies by market capitalization, according to regulatory filings in six countries.

Google slashes overseas tax rate through 'Double Irish' and 'Dutch Sandwich' strategy

[Maya Blue]

JuanHunt, do you try and cut the taxes you owe? Or do you prefer paying the highest rate possible?

[JuanHunt]

Alabama has spent about $2.2billion on incentives to big business in the last 10 years, yet we are still not seeing job growth. AL is just about the only state that has fewer people employed today than in 2007. Incentives dont really work in the long term if your goal is to build a low tax, self sustaining community. And, I'm tired of seeing only big business get any deals.

Googles total package will be more than the initial $50million, and there is probably no clawback on the provisions.
Google opts out of $4.7M grant from North Carolina - Triangle Business Journal

[JakeWilliams]

Originally Posted by JuanHunt

Alabama has spent about $2.2billion on incentives to big business in the last 10 years, yet we are still not seeing job growth. AL is just about the only state that has fewer people employed today than in 2007. Incentives dont really work in the long term if your goal is to build a low tax, self sustaining community. And, I'm tired of seeing only big business get any deals.

Googles total package will be more than the initial $50million, and there is probably no clawback on the provisions.
Google opts out of $4.7M grant from North Carolina - Triangle Business Journal

That article was from 2008, quite a different story in the economy 7 years later.

[JuanHunt]

Is a data center worth about $1million in incentives per job? there wont be any significant additional support required from the area like wold happen with a car plant, its just a big building full of servers. Google rarely if ever meets its job projections after these deals are done, so expect about 50 jobs, with about 15 being janitorial and maintenance of the building an property.

[Tourian]

Originally Posted by JuanHunt

Is a data center worth about $1million in incentives per job?

It isn't, but this is just typical Bentley.

He needs to do something to soften the blow when he brings his bill forward to raise taxes. He can help his favorite group of constituents in North Alabam....err I mean the Tennessee Valley while ignoring the rest of the state. And he can HOPE that having Google on Alabama's resume will help leverage/attract additional businesses that he may not have to use a blood sacrifice to bring in.

All in a day's work.