This week Apple was in the news for saying that it would make a one-time tax payment of $38 billion in order to bring back roughly $245 billion of its $252 billion that had previously been held overseas. Under the new tax law's reduced repatriation rate of 15.5% (previously 35%) the company is able to move the cash to the U.S., which they claim will boost the economy by $350 billion over the next 5 years. An article in the Mercury News states that will come from increased jobs, more investment in domestic manufacturing and a new campus.
What will be the impact on the Bay Area - specifically our real estate market? A new customer support campus in San Jose could create more jobs and increase the need for more new housing in Santa Clara County. In the short term employees were told on Wednesday they would be bonused an additional $2500 in restricted stock units (APPL $178.49).
Will other tech giants with profits in offshore shell companies (Alphabet, Microsoft, Cisco, etc) follow suit and bring some of that cash back to the U.S.?