Administration Initiatives Include Economic Incentives forAmazonHQ2 and Dedicated Funding forMetro
ANNAPOLIS, MD–Governor Hogan was today joined by Senate President Thomas V. “Mike” Miller and Speaker of the House Michael Busch to sign into law two pieces of historic legislation passed during the 2018 Maryland General Assembly session, the Promoting ext-Raordinary Innovation in Maryland’s Economy, or PRIME Act (SB 877) and the MarylandMetro/Transit Funding Act (SB 277/HB 372). The governor and presiding officers were also joined by Montgomery County Executive Ike Leggett, Washington Metropolitan Area Transit Authority (WMATA) CEO and General Manager Paul Wiedefeld, and numerous other elected officials, stakeholders, and community leaders.
The governor commemorated the occasion by taking a ride onMetro’s Red Line from Bethesda to the Grosvenor-Strathmore station prior to the signing ceremony at The Music Center at Strathmore.
“These two critical pieces of legislation are excellent examples of our administration working in a bipartisan fashion to achieve real results for the people of Maryland,” said Governor Hogan. “Dedicated public transportation funding and the potential economic boom of more than 100,000 new jobs withAmazonHQ2 are vital to Maryland’s advancement.”
The PRIME Act, which the governor introduced following Montgomery County’s selection as one of 20 potential locations forAmazon’s HQ2, provides $3 billion in tax credits and exemptions if and whenAmazonlocates in Maryland and creates a requisite number of jobs and economic activity. The centerpiece of the financial incentive package would allow the company to retain a portion of wages paid to employees, which would otherwise go toward state income taxes. The entire incentive package is strictly contingent uponAmazonchoosing to locate in Maryland and meeting promised job creation targets. The governor’s plan also calls forsignificant transportation upgrades to the area around the potential site, which will also benefit local businesses and residents.
“This legislation puts Maryland in prime position to attractAmazon’s new headquarters, which would generate more than $17 billion annually to our state economy,” said Governor Hogan. This is the biggest and most substantial economic development opportunity in a generation.”
The MarylandMetro/Transit Funding Act provides $167 million in dedicated funding for theMetrosystem. Governor Hogan was the first regional leader to propose a solution to address the half-billion dollar a year shortfall thatMetrois currently experiencing. The governor’s original proposal would have split the cost among Maryland, Virginia, Washington, D.C., and the federal government, however the federal government declined to increase their contribution despite federal workers making up nearly 40 percent of riders. A three-way split between Maryland, Virginia, and Washington, D.C. was successfully negotiated, resulting in a steady stream of funding for this vital transit system, as the governor continues to advocate for the federal government to pay its fair share.
“The legislation we are signing into law today marks the first time in history thatMetrohas received a dedicated source of funding,” said Governor Hogan. “Maryland was the first state to propose a real solution for the system’s tremendous financial shortfall; we know thatMetrois a must-have transportation option for Marylanders.”
“With the enactment of these pieces of legislation today, we are sending a very clear message that we can work together in a bipartisan fashion to deliver real results for Maryland and for the Greater Washingtonmetroregion,” said the governor.