On the 70th anniversary of D-Day, the Stars and Stripes billowed in the breeze at Cisco’s sprawling 12-building campus in RTP. Adjacent: the North Carolina state flag. On the pole farthest from RTP’s Kit Drive flew a Cisco flag bearing the corporate banner.

Is Cisco’s tax fight with the US of A over?

No one should underestimate the significance of Cisco (Nasdaq: CSCO) bringing new jobs to RTP as announced Friday..

In February 2013, Cisco Chairman and CEO John Chambers declared no new jobs in the U.S. until tax policy changed.

In April 2013, Chambers bet “my future” on India.”

In June 2013, he called Israel the “first digital nation.”

In December, he committed 1,700 new jobs and billions of investment dollars to Canada.

Fast forward to June 6, 2014.

Friday’s news is a huge vote of confidence for the Cisco 6,000 person team (including 1,500 contractors) in RTP, which must be delivering results that the suits in Silicon Valley like. Plus, Cisco’s president pointed out the company already recruits more engineering graduates from N.C. State “than any other university,” and Cisco engineer Bil Dry – a Wolfpack graduate – gave Gov. Pat McCrory a tech demo during the event Friday.

But perhaps more importantly, this announcement is a big shot in the arm for the RTP economy, North Carolina – and the U.S.

John Chambers has turned his eyes to the homeland and to the Triangle in particular.

Cisco’s chairman and CEO has been fighting corporate U.S. tax policy for years and has said more than once the networking giant wasn’t going to hire or grow in the U.S. until policy changed. Then came Friday’s news that 550 new jobs – and 143 lost through layoffs – will be added to Cisco’s RTP campus.

Even Gary Moore, Chamber’s right-hand man as president and chief operating officer, was in attendance.

So what’s going on?

No Surrender on Taxes

Well, Cisco has not surrendered on taxes. That point was made clear by Ed Paradise, the Site Executive for the RTP campus.

“We’ve still got a lot of cash overseas,” Paradise acknowledged in an interview. The differences – Cisco and other firms, especially high tech allies such as Apple and IBM – want a lower tax on profits returned from overseas operations. As of 2013 the total was a whopping $2.1 trillion, according to a report issued in April. Chambers has even appeared on “60 Minutes” to promote his lower-tax cause.

Paradise pointed out, however, that there is no simple solution. “I don’t think it’s white or black,” he said.

In his own remarks, Moore stressed several reasons for the N.C. expansion. Among them a business friendly environment. “This really has been a partnership with a government that works to generate business,” Moore said. 

“Don’t take that for granted,” he added.

Cisco later provided a statement about its stance and where to put jobs:

“We add jobs where there is talent and opportunity. North Carolina has both. We continue to believe that the U.S. should modernize the tax system and make it more competitive with the rest of the world.”

In terms of bringing jobs to North Carolina, Paradise said that he had “advocated” for North Carolina expansion internally.

Cisco’s last major jobs acquisition was some 1,700 to be added in Canada. But Chambers apparently has been rethinking some jobs for the U.S. over several months.

McCrory, smiled as broadly as possible – and he has one big grin – as he announced the jobs decision. He said he had lobbied Chambers on several occasions to grow jobs in North Carolina. Even tried to get him to move here. McCrory also met personally with Chambers during a visit to Cisco’s Silicon Valley headquarters and talked repeatedly with Paradise.

When told by Chambers that he was considering N.C. for possible expansion, McCrory exclaimed “Considering?”

The Winning Bid and Combination

The lobbying, Paradise’s support, and a tax package that runs more than $12 million over 10 years were among the factors that swayed Chambers.

“The incentives, certainly” said Paradise when asked why Cisco chose RTP. Then he cited RTP, the region, education, and more. “All of accolades this area has received,” he summed up.

North Carolina beat out Texas and Georgia for the jobs. The competition was “very competitive” is how one Cisco spokesperson summed up the bidding.

Bob Geolas, the CEO of the RTP Foundation who attended the announcement, called the news “another affirmation for the quality of the region.” Just last week, NetApp dedicated a new data center only a few hundred yards for Cisco Building No. 12 where the announcement took place. That facility will mean somewhere 150 jobs.

Geolas pointed out recent announcements from Bayer CropScience, BASF and Syngenta only added to the region’s momentum.

Dr. Steven Scott, head of Wake Tech Community College, was all smiles, too. Wake Tech will be working with Cisco to train all those new workers “along guidelines they specify.” Wake Tech also is training interns for NetApp. Paradise, who is a member of the Wake Tech board, pointed out that the quality of the region’s work force is crucial in not only Cisco but other companies locating and expanding here.

Harvey Schmitt, CEO of the Greater Raleigh Chamber of Commerce, says the Cisco choice is another feather in the region’s cap.

How appropriate that on the 70th anniversary of when members of the Greatest Generation from the U.S., Great Britain and their allies stormed the shores of Normandy U.S.-born Cisco gave an economic salute to the homeland.

[CISCO ARCHIVE: Check out more than a decade of Cisco stories as reported in WRALTechWire.]