Amazon Seeks First Incentives For Virginia Headquarters: Report

by Anusuya Lahiri, Benzinga Editor
April 14, 2023 7:37 AM | 2 min read |
  • Amazon.Com, Inc AMZN sought its first round of economic incentive payments from Virginia for its new Arlington headquarters.
  • The incentive could imply over $152 million in state money paid to the tech giant by late 2026, the Washington Post reports.
  • The state promised up to $750 million for Amazon's new Northern Virginia offices, the first phase of which will likely open in June.
  • From 2020-2022, Amazon declined to seek these performance grants due to pandemic-related challenges for those three years.
  • Amazon's application coincided with a rough period for the company, strewn with record layoffs and restructurings. The report adds Amazon shared plans to pause construction on the second part of its campus, including three office towers and a futuristic "Helix" just a stone's throw from the Pentagon.
  • Virginia's incentives for Amazon aim to reward the company's goal of creating 25,000 new jobs in the commonwealth by 2030. State officials agreed to pay the company $22,000 for each full-time position with an average salary of $150,000.
  • Amazon, as of March, had taken on more than 8,000 employees to work at HQ2, being consistently ahead of schedule on hiring.
  • The report further notes that this is the final year Amazon can apply for this round of incentives. The payments reflect hiring and job creation through the end of 2022 and cannot be paid out until FY27.
  • The report quoted Amazon spokesman Zach Goldsztejn who said the company sought state dollars for the 6,939 jobs it has created in Arlington. The state regulator reviews the company's application to verify each new job.
  • Arlington County's incentive grants were likely to total $23 million by the end of this decade. Local officials agreed to pay the company part of an increase in tax revenue from hotels and short-term rentals.
  • Amazon said its construction pause in Arlington is not a sign of further job cuts. 
  • Amazon has yet to enforce a consistent return-to-office policy.
  • Price Action: AMZN shares traded lower by 0.57% at $101.82 premarket on the last check Friday.
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