Projected Impact of Amazon HQ2 to Maryland Exceeds $17 Billion Annually
Project would pump $7.7 billion in wages into state’s economy, support 101,000 jobs
BALTIMORE, Md. — Amazon’s second headquarters project (HQ2) would contribute $17 billion per year in additional activity to Maryland’s economy and $7.7 billion in annual wages when fully operational, according to a new economic impact study commissioned by the Maryland Department of Commerce and Montgomery County.
Furthermore, the project would support 101,000 total jobs and would produce $280 million in additional county tax receipts each year and $483 million in annual state tax receipts according to the analysis, which was conducted by Baltimore-based Sage Policy Group, Inc.
“Amazon’s HQ2 is the greatest economic development opportunity in a generation, and this study confirms just how transformative this project could be for Maryland,” said Governor Larry Hogan. “From the construction phase, to when the headquarters is fully operational, Maryland would reap unprecedented benefits. We are fully committed to bringing this project home, and we look forward to continuing to work closely with Montgomery County to show Amazon that Maryland is truly Open for Business.”
Montgomery County is one of 20 finalists Amazon is considering to be the home of its second headquarters. The company plans to invest $5 billion in the project, which will ultimately create 50,000 new direct, high-paying jobs.
“This study makes it crystal clear that it is very much in the public interest for Montgomery County and the State of Maryland to attract a company like Amazon with a proven track record of making a difference,” said Montgomery County Executive Ike Leggett. “Working together, we can make Montgomery County, Maryland the home for Amazon’s second world headquarters.”
The analysis also examined benefits to the state while the headquarters project is being built. During the construction phase alone, HQ2 would support another 50,000 jobs, pay nearly $3 billion in wages, and spur nearly $7.4 billion in additional business sales. Tax revenues during construction are projected to exceed $110 million at the county level and $190 million at the state level, according to the study.
Sage Policy Group’s study used the IMPLAN model to quantify both direct and secondary impacts of the Amazon HQ2 project. Direct impacts include the immediate effects of Amazon’s capital investments, while secondary impacts might include increased restaurant spending by construction workers in the area and the increased activity from Amazon employees spending their wages.
The project is expected to have additional spin-off benefits, including an acceleration of local entrepreneurship, increased activity at the Port of Baltimore, and an expansion of international travel through BWI Thurgood Marshall Airport, according to the study.
Read the Sage Policy Group report here.
About Maryland Commerce
The Maryland Department of Commerce stimulates private investment and creates jobs by attracting new businesses, encouraging the expansion and retention of existing companies, and providing financial assistance to Maryland companies. The Department promotes the State’s many economic advantages and markets local products and services at home and abroad to spur economic development and international investment, trade and tourism. Because they are major economic generators, the Department also supports the Arts, film production, sports and other special events. For more information, visit commerce.maryland.gov.
