Amazon stands to get nearly $2.5 billion in tax breaks and other incentives as part of its deals to open up two new offices…
Amazon stands to get nearly $2.5 billion in tax breaks and other incentives as part of its deals to open up two new offices with more than 25,000 new jobs at each location. New York City and Arlington, Virginia, won the competition Tuesday to house Amazon’s two new offices, which are being called the second and third headquarters locations for the Seattle online retailer. Nashville, Tennessee, was selected to become an operations hub. Following are some of the perks Amazon says it will get, along with the benefits to the chosen cities.
Incentives offered to Amazon:
— Performance-based direct incentives of $1.525 billion, based on 25,000 full-time, high-paying jobs created. This includes a refundable tax credit of up to $1.2 billion calculated as a percentage of the salaries Amazon expects to pay employees over the next 10 years, which equates to $48,000 per job for 25,000 jobs with an average wage of over $150,000.
— Cash grant of $325 million based on the square footage of buildings occupied in the next 10 years.
— Amazon will also apply for as-of-right incentives including New York City’s Industrial & Commercial Abatement Program and New York City’s Relocation and Employment Assistance Program. There was no dollar figure immediately attached to this benefit.
City benefits:
— More than 25,000 full-time jobs.
— $2.5 billion investment from Amazon.
— Facilities totaling 4 million square feet, with the potential to double in size.
— Projected incremental tax revenue of more than $10 billion over 20 years.
Incentives offered to Amazon:
— Performance-based direct incentives of $573 million based on 25,000 jobs created with an average wage of over $150,000.
— Cash grant of $23 million over 15 years based on the incremental growth of existing tax on hotel rooms.
City benefits:
— More than 25,000 full-time jobs with average wage exceeding $150,000.
— $2.5 billion investment from Amazon.
— Facilities totaling 4 million square feet, with the potential to double in size.
— Projected incremental tax revenue of $3.2 billion over 20 years.
Incentives offered to Amazon:
— Performance-based incentives of up to $102 million based on 5,000 jobs created over 7 years with an average wage of over $150,000.
— Cash grant of up to $15 million based on $500 for each job created over the next 7 years.
— Job tax credit to offset franchise and excise taxes from the state of Tennessee of $21.7 million based on $4,500 per new job over the next 7 years.
City benefits:
— 5,000 full-time jobs with an average wage exceeding $150,000.
— More than $230 million in investment.
— 1 million square feet of energy-efficient office space.
— Estimated incremental tax revenue of more than $1 billion over the next 10 years.
