Newark City Council has promised to give Amazon a payroll tax break of US$1 billion if the company opens its second headquarters there.
Mayor Ras Baraka said in a statement: "The City Council has brought Newark a giant step closer to being Amazon’s choice for HQ2. The creation of 12,500 jobs for Newark residents, the added revenue to Newark families plus the added revenue to the city of Newark, Newark public schools and Newark public library make HQ2 a game changer in the transformation of our city."
The new ordinances do not explicitly name Amazon but instead refer to headquartered companies intending to create over 30,000 new full-time jobs and make US$3 billion in capital investments.
For an employee that does not reside in the city, Amazon would pay 50% on payroll tax of 1%, while employees who do so would be totally exempt. The payroll tax incentive would be capped at US$1 billion, the ordinance reads.
Another ordinance has also been drawn up to streamline the process of land-use and permit approvals for large companies. Under its terms, the downtown area would be designated as an Urban Growth Zone and the state's Economic Development Authority would provide financial assistance to approved projects and exempt them from the requirements of local regulations.
According to TapIntoWarren, a third ordinance slated for approval would provide a US$10,000 corporate business tax credit for 10 years for each employee hired.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
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Newark City Council has promised to give Amazon a payroll tax break of US$1 billion if the company opens its second headquarters there.
Mayor Ras Baraka said in a statement: "The City Council has brought Newark a giant step closer to being Amazon’s choice for HQ2. The creation of 12,500 jobs for Newark residents, the added revenue to Newark families plus the added revenue to the city of Newark, Newark public schools and Newark public library make HQ2 a game changer in the transformation of our city."
The new ordinances do not explicitly name Amazon but instead refer to headquartered companies intending to create over 30,000 new full-time jobs and make US$3 billion in capital investments.
For an employee that does not reside in the city, Amazon would pay 50% on payroll tax of 1%, while employees who do so would be totally exempt. The payroll tax incentive would be capped at US$1 billion, the ordinance reads.
Another ordinance has also been drawn up to streamline the process of land-use and permit approvals for large companies. Under its terms, the downtown area would be designated as an Urban Growth Zone and the state's Economic Development Authority would provide financial assistance to approved projects and exempt them from the requirements of local regulations.
According to TapIntoWarren, a third ordinance slated for approval would provide a US$10,000 corporate business tax credit for 10 years for each employee hired.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
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