State Lawmaker Announces Billion Dollar Amazon Plan for California

Real Estate Weekly News

By a News Reporter-Staff News Editor at Real Estate Weekly News -- California State Assemblyman Bill Brough announced his plans to introduce special economic incentive legislation that could provide a billion dollars in tax breaks for Amazon over the next decade.

"Orange County is a strong pro-business region that can accommodate the 50,000 new high-paying jobs Amazon wishes to create. This legislation sends a message that California is serious about repealing its image as a non-business friendly state," said Brough.

In a recent Brietbart article, Joseph Vranich, President of Spectrum Location Solutions in Irvine, CA found that approximately 9,000 California companies moved their headquarters or diverted projects to out-of-state locations in the last seven years due to the Golden State's "hostile" business environment.

"California must always remember that in today's global economy, location is not permanent, but is a choice. The intent of this legislative package is to make that choice easier for Amazon to locate their business, suppliers, contracts, and product investments here in Orange County," said Brough.

Orange County meets Amazon's requirement, being one of the most diverse, highly educated, tech savvy workforces comprised of employees from some of the highest ranked public schools. In addition, it provides access to major transportation hubs for ports and airports. Brough's economic package will state the intent of the Legislature to provide financial incentives and changes to the regulatory and environmental processes to expedite groundbreaking, new construction in California, by bringing Amazon to our state.

This bill reestablishes the California Legislature's "Capital Investment Incentive Program" (CIIP) that provides for a property tax abatement for up to 15 consecutive years, giving local governments, the tools needed to attract large facilities to locate and invest in their communities. In addition, Amazon would be eligible for an expanded hiring credit in Orange County equal to 17 1/2 percent of wages paid to full time California employees.

The headquarters of Amazon would employ as many as 50,000 people, making an average salary of $100,000 per year. Previous CIIP agreements netted just over $3,000,000 in property tax rebates for projects ranging around $385,000,000.

"I hope this legislation gets the attention of Amazon's CEO Jeff Bezos and gives Governor Jerry Brown more leverage to finalize a deal," said Brough.

Assemblyman William P. Brough serves as the Vice Chair of the Assembly Committee on Revenue and Taxation and Vice Chair of the Assembly Committee on Business and Professions. He represents the 73rd Assembly District in the California Legislature, which includes the communities of Aliso Viejo, Coto de Caza, Dana Point, Ladera Ranch, Laguna Hills, Laguna Niguel, Las Flores, Mission Viejo, Rancho Santa Margarita, San Clemente, and San Juan Capistrano.