Council clears way for tech companies to get tax breaks

May 23, 2014
Austin American Statesman

The Austin City Council cleared the way Thursday for two tech companies to receive state tax breaks in exchange for hundreds of new jobs and millions in investment

The council unanimously approved designating Flextronics America and Spansion as Enterprise Zone Projects under the Texas Enterprise Zone Act. That designation will allow the companies to get refunds on their state sales and use taxes

In return, Flextronics has committed to creating 300 new jobs and anticipates $15 million in investment. Spansion has agreed to more than $200 million in investment over the next five years

Both companies are headquartered elsewhere, but have significant presences in Austin

Flextronics made news last year, when Apple confirmed that its new Mac Pro computers would be built at the Flextronics Americas factory in Northwest Austin. As of October 2013, Singapore-based Flextronics said it had more than 2,500 local employees

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