Finding the right business headquarters is an important choice. The right location can help set the company’s image and impact the type of workers that are interested in working for the business.
Amazon to build headquarters in New York
As noted by Bloomberg, Amazon is setting up to open a new headquarters in Long Island. The move is in sharp contrast to the thought that corporate employers avoid higher cost cities in favor of lower rates in more rural locals. New York does tax higher than most places. In addition to state taxes, New York also has its own income tax.
Amazon recently made the deal official, pointing to the labor pool as a motivating factor for the location choice. Another key reason for the deal: a number of corporate tax incentives.
Incentives played a role in the choice
Although taxes are higher in New York compared to other locations like Atlanta or Dallas, there are some incentives that helped the deal. This Queens development deal, as noted in a recent piece by the New York Times, involved over a “billion dollars in tax incentives and state grants.” New York offers a number of incentive programs that can help other businesses as well, including programs like the START-UP NY Program which offers tax incentives for new and expanding businesses to operate tax-free for up to 10 years or the Excelsior Jobs Program that results in job tax credits for businesses that expand and relocate to New York.
These are just a few considerations that can be unique in the New York market. As such, it is wise for business leaders to seek legal counsel to help better ensure that their business plans take these and other considerations into account. The experienced attorneys with Goldburd McCone, LLC can help.