Amazon must occupy 64,000 square feet of office space in Arlington, Va., by June 30, 2020, in order to receive 15 percent of the city’s incremental transient occupancy tax revenue, according to a new proposed agreement.
Arlington County released on March 5 the official Economic Development Incentive Grant Agreement, which county officials will vote on March 16. The document breaks down the required office space the e-commerce giant must maintain to receive staggered payouts from the city.
- Bloomberg Tax previously reported that the county would offer $23 million to Amazon.com Inc., but specific square footage requirements weren’t disclosed.
- Amazon must occupy 1.6 million square feet by June 30, 2025, to receive a staggered incentive payout. That threshold rises to 3.54 million square feet by June 30, 2030, and 6.06 million square feet by June 30, 2035.
- The agreement comes two weeks after Amazon announced it would cancel plans to build half of its second headquarters in New York City after a local and national backlash. Joseph Bishop-Henchman, executive vice president of the Tax Foundation—a think tank in Washington—previously told Bloomberg Tax it is “very likely” that Amazon’s Arlington campus would absorb the 25,000 jobs intended for New York City in addition to 25,000 already earmarked for Virginia.