Amazon Offered Billions in Tax Breaks as it Moves Towards Second Headquarters Decision
SEATTLE, WA – As Amazon inches closer to its decision for its second North America headquarters, dozens of cities and states are looking to woo Amazon with as much as $7 billion in tax breaks to get HQ2 built on their turf.
Announced earlier this year, Amazon HQ2 is expected to be a $5 billion-plus investment and will provide up to 50,000 jobs, and states like New Jersey, New York, and California are pulling out all the works to ensure HQ2 calls their state home.
According to Reuters, a news release from the New Jersey governor’s office revealed a proposal of $7 billion in potential credits against state and city taxes if Amazon locates in Newark and sticks to hiring commitments. Not to be upstaged, New York City made a proposal without incentives special for Amazon, though the state is expected to offer some, a spokesperson for the city’s economic development corporation said on Wednesday. While California’s governor chose a more personal route, offering $300 million in incentives over several years plus other benefits in a letter to Amazon’s Chief Executive Jeff Bezos, published online by the Orange County Register.
However, one southern city might just house the key to winning the HQ2 race. Austin’s chamber of commerce said in a Twitter post on Wednesday that it submitted its bid for HQ2, and it may just be the winner. Credit ratings and research company Moody’s has ranked Austin as the most likely to win based on its labor pool, costs of doing business and quality of life, among other criteria. Austin is also the headquarters of Whole Foods Market, which Amazon recently acquired earlier this year.
Will Amazon choose Austin, the headquarters of newly acquired Whole Foods, or will another city nab the spot for HQ2? With the release of the announcement expected next year, AndNowUKnow will continue to report.