Why Marylanders Should Oppose $8.5 Billion Amazon Incentive Package

While Amazon’s relationship with the U.S. Postal Service generated most of the headlines this week, another significant development flew relatively under the radar. This week Maryland’s House passed an incentive package totaling $8.5 billion, following passage in the Senate last month it will now head to Governor Larry Hogan's desk. The package is the largest in the state’s history and the most recent development in the competition to land the company’s second headquarters.

Amazon has become one of the largest, most dynamic companies in the world, and it is understandable that different states are interested in its second headquarters. However, incentive packages of this size would reduce much of the related benefits of the move. State and local governments would be better served by reining in these incentive packages and focusing on creating a broader framework more in line with the other criteria outlined by Amazon, including quality of life, an educated labor pool, and a supportive regulatory environment.

An environment with these characteristics would be attractive to all businesses from startups to mom-and-pop restaurants and dry-cleaners to large companies such as Amazon.

Maryland’s newly approved law, going by the cringe-worthy name Promoting ext-Raordinary Innovation in Maryland’s Economy (PRIME Act), while not explicitly exclusive to Amazon, is tailored to the company as only its HQ2 could meet the criteria.

The incentives match any Fortune 100 company that seeks to hire 40,000 qualified workers with average compensation of at least $100,000 and includes $4.5 billion in related project expenditures. It is difficult to envision any other company that would be able to meet all of the different eligibility requirements. Large employers such as Walmart would be unable to meet the average compensation requirements, while most tech companies would not place sufficient associated investments in one location.

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