Amazon is planning on building a second headquarters in the United States. They are not yet sure which city they want to build their headquarters in. Some cities, realizing the great opportunities for jobs and the economy that a second Amazon headquarters would offer, are offering Amazon incentives for them to build their headquarters in their city.

Chicago is offering Amazon an interesting kind of incentive. They are offering the personal income taxes that Amazon’s workers will pay. Instead of the taxes being kept by the government, Chicago is offering to give Amazon the 1.32 billion dollars in personal income taxes that its workers will pay.

The new headquarters would cost around $5 billion and would employ around 50,000 workers. They will choose the city that they will build their headquarters in at the beginning of next year. With Chicago’s offer, the workers will continue paying the taxes, but the government will let Amazon keep the money instead of keeping it themselves.

This is not the first time that a city has offered such a program. There are almost two dozen programs in the United States that work in a similar way. Cities know that by having big companies such as Google, Target, Sears, and Amazon in their city, they will have a better economy because there will be more job opportunities. Some are offering personal income tax diversion programs to those companies, just like Chicago is doing.

Amazon has received hundreds of offers from various cities. However, most of these offers have not yet been made public. Therefore, we do not know the exact details of Chicago’s offer. However, we do know that it is part of their new Edge program, which was just relaunched in September. Edge stands for Economic Development for a Growing Economy.