New Jersey Lawmakers Approve Amazon Tax Credit Package

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By Leslie A. Pappas

New Jersey lawmakers on Jan. 8 approved a proposal to give Amazon.com Inc. at least $3 billion in New Jersey tax credits to establish a second headquarters in the state.

The Assembly voted 61-10 in favor A.B. 5340, which would award a tax credit of $10,000 per job per year for an “eligible business” that creates “at least 30,000 new full-time, high-paying jobs” and makes a capital investment of at least $3 billion in the state. A companion bill ( S.B. 3631) was approved by the Senate Jan. 8 by a vote of 30-3.

The bill is one of many attempts throughout the country to woo the Seattle-based online retailer to build a second headquarters in the state. New Jersey lawmakers said that Amazon’s first headquarters in Seattle pumped $38 billion in the city’s economy between 2010 and 2016 and created more than 50,000 jobs.

Assembly Speaker Vincent Prieto (D), one of the bill’s sponsors, said the bill was about “jobs, jobs, and even more jobs.”

Outgoing Gov. Chris Christie (R), who will give his last State of the State address Jan. 9 before his term ends Jan. 16, has expressed support for the measure.

The New Jersey Business and Industry Association has also expressed support for the incentives.

The progressive policy and advocacy group New Jersey Policy Perspective opposes the bill, saying the state has gone overboard on tax breaks. In a statement Jan. 8, NJPP Vice President Jon Whiten said lawmakers in New Jersey “have doubled down on trickle-down economics by clearing the way for a gigantic tax subsidy for Amazon.”

According to the Irish betting website paddypower.sport, New Jersey isn’t among the 19 U.S.-based jurisdiction most likely to land the new headquarters. Atlanta and Austin, Texas, lead the way at 3:1 odds.

To contact the reporter on this story: Leslie A. Pappas in Philadelphia at lpappas@bloomberglaw.com

To contact the editor responsible for this story: Ryan C. Tuck at rtuck@bloombergtax.com

For More Information

A-5340 is at http://src.bna.com/vtK

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