One Click HQ2 One Click HQ2 - Page 88

The following tables list other financial incentives available to Amazon. As we learn more about the investments Amazon may make in California, we stand ready to work with the company to estimate the value of the incentives that could be available from the following targeted programs. Other Available Tax Credits Other Available Tax Credits Transportation Solutions In California we have a proven track record of working with the private sector on innovative solutions to deliver transportation projects that expedite and improve our transportation systems. In the spring of 2016 the California State Transportation Agency Secretary, Brian Kelly, met with local government officials, Silicon Valley employers and community advocates to discuss transportation improvements to the 101 corridor. This focused workgroup has been successful in expediting environmental review and focusing state and local efforts on projects that will deliver accelerated improvements to the 101 corridor. As part of the transportation funding package, $250 million annually will be provided for innovative congestion relief efforts like the 101 corridor. The Governor is committed to working with Amazon, local governments and other community advocates on innovative approaches to address transportation issues around an Amazon HQ2 project in California. Workforce Housing In California we understand that workforce housing is a critical factor to consider when making a siting decision. We have recently passed a permanent funding source, a housing bond and a package of reform measures that will increase housing supply in California, including workforce housing. Beginning in 2019, the state will direct approximately $37 million annually for workforce housing that serves lower to moderate income households. The Governor is committed to working with Amazon, local governments and other advocates to create innovative partnerships that address workforce housing issues around an Amazon HQ2 project in California. 88 Environmental Stewardship California is leading the way on reducing greenhouse gas emissions and making investments in technologies and projects that aid the transition of the state’s economy. This year the state is allocating over $1 billion in revenues from the cap and trade program to programs that reduce greenhouse gas emissions, including investments that increase the deployment of zero-emission vehicles (ZEVs) and necessary infrastructure. The state has also invested in Transformational Climate Communities that take an innovative and coordinated approach to reducing greenhouse gas emissions and provide local economic, environmental and health benefits to disadvantaged communities. For example, should Amazon choose to provide shuttle buses for its employees on and around its HQ2 campus, state net zero incentives could help with the acquisition of such buses. The Governor is committed to working with Amazon, the state legislature and other stakeholders to meet shared environmental stewardship goals, including the implementation of sustainability strategies for the community around an Amazon HQ2 project. Local Government Incentives The Governor has just approved the extension of the Capital Investment Incentive Program (AB 755) that authorizes regional and local governments to offer property tax abatement to a qualified business for up to 15 years for large projects like the Amazon HQ2 project. Other Financial Incentives Available The following tables list other financial incentives available to Amazon. As we learn more about the investments Amazon may make in California, we stand ready to work with the company to estimate the value of the incentives that could be available from the following targeted programs. Benefit Name (Program/Service) Calculation/ Value Limits Requirements Process Duration Research Credit 15% of excess of qualified expenses, plus 24% of basic research payments None Form 3523 Filed with annual tax return Film and TV Production Credit – Relocating TV Series Up to $25,000,000 Credits apply to the first $10,000,000 of qualified expenditures Application Required 30+ days Film and TV Production Credit – Independent Films Up to $2,500,000 Credits apply to the first $10,000,000 of qualified expenditures Application Required 30+ days Film and TV Production Credit – Feature Films, MOW and Mini, New TV Series and pilots Up to $20,000,000 Credits apply to the first $10,000,000 of qualified expenditures Application Required 30+ days Film and TV Production Credit – Credit Uplift (out of zone) N/A The maximum credit a production can earn is 25% Application Required 30+ days Sales and Use Exemptions and Exclusions Sales and Use Exemptions and Exclusions Sales and Benefit Use Exemptions and Exclusions Name (Program/Service) Advanced Benefit Manufacturing, Name Advanced Transportation, (Program/Service) Calculation/ Value Limits Exemptions from the state’s portion of Value the Calculation/ sales and use from tax the Exemptions Limits vary. 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