Amazon will get up to $2.2 billion in incentives from New York City, Northern Virginia and Nashville
Amazon is receiving up to $2.2 billion in performance-based incentives from New York City, Northern Virginia and Nashville, according to a release from the company.div > div.group > p:first-child">
Amazon ended its year-long search for its "second headquarters" with an announcement Tuesday morning.
Amazon says it's investing $5 billion and will create more than 50,000 new high-paying jobs in two new main offices in Long Island City, a neighborhood in Queens, New York; and National Landing, a neighborhood in Arlington, Virginia. It also announced a new Operations Center of Excellence in Nashville, Tenn., which it claims will create 5,000 more jobs.
Long Island City, New York
Amazon will receive more than $1.5 billion in performance-based incentives over the next ten years for its investment in Long Island City, the company said in a blog post announcing the news.
This includes up to $1.2 billion worth of refundable tax credits through New York State's Excelsior Program based on a percentage of salaries Amazon expects to pay employees there for the next ten years. Amazon estimates this will be an incentive of $48,000 per job out of the 25,000 jobs it plans to create there with average wages over $150,000.
Another part of the incentive comes from Empire State Development, which will award Amazon a cash grant of $325 million. This incentive is based on the square footage Amazon plans to operate over the next 10 years.
The company still plans to apply for additional as-of-right incentives from New York City's Industrial & Commercial Abatement Program and its Relocation and Employment Assistance Program, Amazon said in the blog post.
National Landing, Virginia
Amazon will receive $573 million in performance-based incentives for its investment in National Landing in Arlington, Virginia.
That number includes a workforce cash grant worth up to $550 million from the Commonwealth of Virginia based on the 25,000 jobs Amazon plans to create there. The company said average wages will also be $150,000 in the Arlington location, bringing the cash grant value to $22,000 per job created over the next 12 years. This incentive is contingent on Amazon creating the high-paying jobs it promises.
The incentive also includes a $23 million cash grant from Arlington over 15 years based on incremental growth of an existing local tax on hotel rooms.
Virginia Governor Ralph Northam called the deal a "win-win for all of Virginia" in a TV interview on CNBC after the announcement.
"I think we put a modest and disciplined package on the table," Northam said. "Over 70 percent of [the] commitment is focused on education, workforce training for those 21st century jobs, and also infrastructure and transportation."
Amazon will receive up to $102 million in performance-based incentives for its investment in Nashville. While the Nashville location will be a new Operations Center of Excellence, rather than a headquarters, the company plans to bring 5,000 full-time jobs there with an average wage over $150,000.
The incentives include a $65 million cash grant for capital expenditures from the state of Tennessee. This incentive is based on Amazon building the 5,000 jobs over seven years, which comes to $13,000 per job.
It also includes a cash grant up to $15 million from the city of Nashville based on $500 for each new job Amazon creates over the next seven years.
Finally, the incentive includes a tax credit from the state of Tennessee worth $21.7 million based on $4,500 per new job over seven years. This credit is meant to offset franchise and excise taxes, Amazon wrote.