Maryland Gov. Larry Hogan has announced sweeping tax legislation to accompany an incentive package that devotes billions to transit and infrastructure in an effort to entice Amazon into building their second headquarters in the state.
The Promoting ext-Raordinary Innovation in Maryland’s Economy Act of 2018, announced Jan. 22, provides a state income tax credit equivalent to 5.75% of wages for each new qualifying headquarters job, a state and local property tax credit and a state sales and use tax exemption for construction material.
Hogan offered Amazon a sweeping package of tax incentives to locate its second headquarters to Maryland. (Brian Witte/Associated Press)
These tax incentives are one piece of a package that allocates of $10 million per year to the state’s Sunny Day Fund over 15 years and billions of dollars in road, transit and infrastructure upgrades. The Sunny Day Fund supports large economic development projects that create employment opportunities.
Montgomery County, Md., is one of 20 locations that Amazon has selected for consideration to host the company’s second headquarters, HQ2.
“Amazon sent a clear signal that Maryland truly is open for business by selecting Montgomery County as one of an elite group of contenders for this transformative project,” Hogan said in a press release issued Jan. 22. “HQ2 is the single greatest economic development opportunity in a generation, and we’re committing all of the resources we have to bring it home to Maryland. I look forward to continuing to work closely with Montgomery County Executive Ike Leggett and all county leadership as we do everything possible to secure this incredible opportunity.”
HQ2 is the single greatest economic development opportunity in a generation.
Maryland Gov. Larry Hogan
The Montgomery County package totals $5 billion in incentives and transportation improvements.
The Maryland Department of Commerce will administer the Prime Act once it is signed into law. The legislation applies to a Fortune 100 company creating a new headquarters facility in the state with employees earning an average salary of at least $100,000 per year.
The other places Amazon is considering are: Atlanta; Austin, Texas; Boston; Chicago; Columbus, Ohio; Dallas; Denver; Indianapolis; Los Angeles; Miami; Nashville, Tenn.; Newark, N.J.; New York City; Northern Virginia; Philadelphia; Pittsburgh; Raleigh, N.C.; Toronto and Washington, D.C.