Daily Tax Report: State provides authoritative coverage of state and local tax developments across the 50 U.S. states and the District of Columbia, tracking legislative and regulatory updates,...
Amazon.com Inc. could get billions in state tax incentives and infrastructure improvements under an incentive package Maryland Gov. Larry Hogan (R) signed into law April 25.
S.B. 877, known as the PRIME Act, would offer state tax breaks to any “qualifying business” that commits to hiring a minimum of 40,000 people and spending $4.5 billion over a 17-year period. The tax breaks and exemptions could be worth $3 billion to Amazon if it locates its headquarters in Maryland, Hogan said in a press release April 25.
“This legislation puts Maryland in prime position to attract Amazon’s new headquarters, which would generate more than $17 billion annually to our state economy,” Hogan said in a statement. “This is the biggest and most substantial economic development opportunity in a generation.”
The incentive package as passed in the legislature April 4 called for $5.6 billion in tax incentives to any “qualifying business” that commits to hiring a minimum of 40,000 people and spending $4.5 billion over a 17-year period. The incentives only would take effect if Amazon comes to Maryland and would expire if a business doesn’t qualify before Jan. 1, 2022.
Hogan’s office didn’t immediately respond to requests for comment on whether the bill was modified in any way before he signed it. There was no indication of a change on the legislature’s website.
The legislation was written directly in response to Amazon’s September 2017 announcement that it would establish a second headquarters (HQ2). Amazon has put Montgomery County, Md., on its short list of potential HQ2 sites.
Amazon’s second headquarters would support more than 100,000 total jobs and bring Maryland an extra $17 billion per year in economic activity, an analysis from the Maryland Department of Commerce estimated.
Also signed April 25, the Maryland Metro/Transit Funding Act would provide $167 million in dedicated funding for the Metro transit system, which serves Maryland, Virginia, and Washington, D.C.
According to the press release, Hogan “was the first regional leader to propose a solution to address the half-billion dollar a year shortfall that Metro is currently experiencing.”
“The governor’s original proposal would have split the cost among Maryland, Virginia, Washington, D.C., and the federal government, however the federal government declined to increase their contribution despite federal workers making up nearly 40 percent of riders,” the press release said. “A three-way split between Maryland, Virginia, and Washington, D.C. was successfully negotiated, resulting in a steady stream of funding for this vital transit system, as the governor continues to advocate for the federal government to pay its fair share.”
To contact the reporter on this story: Leslie A. Pappas in Philadelphia at firstname.lastname@example.org
To contact the editor responsible for this story: Ryan C. Tuck at email@example.com
Text of S.B.877 is at http://src.bna.com/yii.
Copyright © 2018 Tax Management Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)