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Amazon.com Inc. would get $7 billion in tax credits and incentives under bipartisan legislation New Jersey Gov. Chris Christie (R) signed Jan. 11.
The new law ( P.L.2017, c.282) offers the Seattle-based online retailer up to $5 billion in state tax credits over 20 years for establishing its second headquarters in-state. On top of the $5 billion in tax incentives, which the new law offers through the state’s Economic Development Authority, the city of Newark would also offer a property tax abatement worth $1 billion and a city wage tax waiver worth about $1 billion to future Amazon employees.
“Today’s bipartisan action proves that nobody in any other state wants Amazon’s HQ2 more than New Jersey and the City of Newark,” Christie said in a statement Jan. 11.
New Jersey’s offer is just one of 238 proposals that cities, regions, and states are pushing for Amazon to build a second headquarters there. Georgia, for example, said it might hold a special legislative session to enact incentives to woo the retail behemoth to Atlanta. Unlike New Jersey, most states haven’t disclosed details of the proposals.
The tax incentives New Jersey is offering will pay for themselves in nine to 11 years, and will then add $1 billion in new tax revenue after that, according to an analysis released Jan. 11 by the Newark Community Economic Development Corporation, a business development company that promotes the city, and the Newark Alliance, a nonprofit dedicated to the city’s economic revitalization.
The analysis also predicts that Amazon would create between 70,000 and 110,000 additional jobs beyond its own employees.
Amazon currently employs about 13,000 in New Jersey at fulfillment centers.
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Text of P.L.2017, c.282 is at http://src.bna.com/vA4.
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