Amazon announced Tuesday that it’s chosen Long Island City in Queens and Arlington, Virginia, as locations for its new headquarters — thanks to billions of dollars in incentives and unprecedented cooperation between Mayor Bill de Blasio and Gov. Andrew Custom.
retail giant, which has pledged a $5 billion investment to create 25,000 jobs at each location, will receive a combined amount of roughly $3 billion in tax credits and grants from both New York State and New York City.The two new locations join Seattle as Amazon’s three headquarters in North America.
In New York, the company said it would receive “performance-based direct incentives” of at least $1.525 billion from the state if it creates all of the 25,000 jobs it promised.If it creates more as many as 40,000 it would get $1.7 billion.
That includes a refundable tax credit through New York State’s Excelsior Program of up to $1.2 billion, calculated as a percentage of the salaries Amazon expects to pay employees over the next 10 years, or $48,000 per job, based on an average wage of over $150,000.
In Virginia, however, the incentive per job was estimated at $22,000.Amazon will separately apply for as-of-right incentives including New York City’s Industrial & Commercial Abatement Program and New York City’s Relocation and Employment Assistance Program.