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ILLINOIS
PREPARED TO GIVE $2B IN TAX BREAKS, INCENTIVES TO AMAZON FOR HQ2
Illinois Policy Institute/
Brendan Bakala
WTTW has reported that Illinois, Cook
County and Chicago are poised to offer Amazon $2 billion to lure the
company’s second North American headquarters to the region.
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 State, county and local governments
in Illinois are prepared to offer internet retail giant Amazon a combined $2
billion worth of tax breaks and incentives, according to WTTW.
Anonymous sources close to the effort told WTTW that the approximately $2
billion package is what Illinois state government, Cook County and the city of
Chicago would be willing to offer Amazon for the retailer’s coveted second North
American headquarters, dubbed HQ2.
Though the exact breakdown of which entities would pay for what is not currently
known, WTTW’s sources say Illinois, Cook County and Chicago would be willing to
spend up to $1.6 billion in tax breaks and $400 million in infrastructure and
capital investment around the project.
 The Economic Development for a Growing Economy, or EDGE, tax credit, the state’s
main business incentives program, was brought back in September. And it is
likely EDGE will play some role in Illinois’ bid for HQ2.
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It is estimated HQ2
would bring with it 50,000 new full-time jobs and up to $5 billion
of investment in new facilities, prompting a national bidding war of
federal, state and local politicians from coast to coast. Both
Chicago Mayor Rahm Emanuel and Gov. Bruce Rauner have shown interest
in landing the deal.
However, if Illinois
politicians’ selling points are focused simply on buying Amazon’s
favor with tax credits and development deals, they’ve already been
outspent.
New Jersey is reportedly offering Amazon $7 billion in tax breaks
and incentives for HQ2 to be built in the Garden State. Like
Illinois, New Jersey has some of the highest property taxes in the
nation, a massive pension debt crisis, and is experiencing
out-migration.
New Jersey politicians are ready to write a big check to one of the
world’s wealthiest companies. If Illinois politicians want long-term
sustainable jobs growth, and not one-time deals fueled by billions
in corporate handouts, they should embrace pro-growth reforms.
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