Amazon East: Incentives from, benefits for new Amazon HQs
In this Nov. 7, 2018, photo, a water taxi approaches the Long Island City waterfront and new high-rise luxury apartment buildings, passing the landmarked PepsiCola sign in Gantry Plaza State Park in the Queens borough of New York. On Tuesday, Nov. 13, Amazon said it will split its second headquarters between Long Island City in New York and Crystal City in northern Virginia. (AP Photo/Mark Lennihan)
This Friday, Nov. 9, 2018, photo shows a view of Crystal City, Va., and the United States Air Force Memorial, and the Pentagon from a revolving restaurant. On Tuesday, Nov. 13, Amazon said it will split its second headquarters between Long Island City in New York and Crystal City. (AP Photo/Susan Walsh)
Amazon could get more than $2 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, will be home to two new nerve centers, which are being called the second and third headquarters for the Seattle company. Nashville, Tennessee, was named as an operations hub. Following are some of the perks Amazon says it will get, along with the perks for the cities.
NEW YORK CITY - Long Island City
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 salaries Amazon expects to pay over 10 years, which equates to $48,000 per job for 25,000 jobs with an average wage of over $150,000. Also, a 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.
ARLINGTON, VIRGINIA - Neighborhoods close to Reagan National Airport
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. That includes a cash grant of $23 million over 15 years based on the incremental growth of existing tax on hotel rooms.
— Virginia will spend up to $295 million on transportation projects, including upgrades for the Metro system and a connector bridge from Crystal City to National Airport.
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.
NASHVILLE, TENNESSEE
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.