The iPhone maker will take advantage of the new tax legislation and repatriate hundreds of billions in overseas profits to invest domestically.

By Joe McDonough

Posted on January 18, 2018

Apple has announced plans to inject $350 billion into the US economy and create 20,000 new jobs over the next five years.

In a statement released on Wednesday, Apple reveals it expects to pay a record $38 billion in tax to repatriate what CNBC estimates will be almost all of the $250 billion it is holding abroad.

The decision to retrieve its foreign cash trove follows the recent passing of Donald Trump’s new tax bill, which changes the way foreign profits brought back to the US are taxed.

Upon signing the bill into law in December, Trump said: “By cutting taxes and reforming the broken system, we are now pouring rocket fuel into the engine of our economy.”

Apple’s repatriation supports this, with the company saying it will invest tens of billions in domestic jobs, manufacturing, and data centres.

Capital expenditures over the next five years will total $30 billion, and it plans to establish a new campus, which will focus on technical support for customers. The location is yet to be revealed.

Apple — which is already the largest US tax-payer — has long lobbied for tax reform, and CEO Tim Cook has wasted no time detailing his investment strategy and job creation plans.

“Apple is a success story that could only have happened in America, and we are proud to build on our long history of support for the US economy,” he said.

“We believe deeply in the power of American ingenuity, and we are focusing our investments in areas where we can have a direct impact on job creation and job preparedness. We have a deep sense of responsibility to give back to our country and the people who help make our success possible.”

The iPhone maker will still have plenty of cash in reserve, and could spend that money on buybacks, acquisitions or moonshot projects.

The Australian Financial Review reports shares in Apple were 1.4% higher at $US178.74 in late trade.