Amazon.com Inc.'s decision to open one of its new headquarters in Virginia could have an economic impact of $14.2 billion and 59,308 jobs in 2030 when Amazon's operation reaches its full capacity, according to a Dec. 7 report from Chmura Economics & Analytics.
Amazon's total capital expenditures and operations could bring $1.18 billion to Virginia in tax revenues within 12 years and $224 million in 2030 alone, according to study estimates.
While the study presumes that 25% of the jobs created by Amazon will be held by nonresidents of Virginia, it found that the state could still collect individual income taxes totaling $975.8 million from 2019 to 2030. The largest share of tax revenue Amazon's operations are expected to generate will come from individual income taxes on the 25,000 high-paying jobs that Amazon promised, according to the study.
Between 2019 and 2030, Amazon's operations in Arlington County are expected to boost the county's employment growth rate from 1.2% to 2.2% per year and from 1.2% to 1.3% per year in Northern Virginia. The new high-paying jobs are also expected to boost the county's average wage by 6.5% from $88,449 in the second quarter of 2018 to $117,651 by 2030, according to the study commissioned by the Virginia Chamber Foundation.
Amazon's yearlong search for a second headquarters location ended Nov. 13, when the company announced that it would set up operations in both Long Island City in Queens, N.Y., and Crystal City in Arlington, Va. The company's search was initially focused on one location.
Virginia is giving Amazon incentives worth $573 million, which includes a workforce cash grant of up to $550 million over 12 years if Amazon follows through on its promise to generate high-paying jobs. Amazon said it plans to invest $25 billion in Northern Virginia and generate 25,000 jobs.