Amazon has said it expects to invest over $5bn (£3.8bn) in construction costs to create a second headquarters location, which it says will be a full equal to its current campus in Seattle. 

HQ2 will create as many as 50,000 high-paying jobs, while the company says its direct hiring and investment, construction and operation of Amazon HQ2 is expected to create tens of thousands of additional jobs and tens of billions of dollars in additional investment in the surrounding community. Amazon estimates its investments in Seattle from 2010 through 2016 resulted in an additional $3bn to the city’s economy.

In its explanation of what it is looking for in the new location, Amazon cites ‘a stable and business-friendly environment’. Other stated preferences include metropolitan areas with more than one million people; urban or suburban locations with the potential to attract and retain strong technical talent; and ‘communities that think big and creatively when considering locations and real estate options’.

In its request for proposals, which lists the factors which will influence its eventual choice, Amazon says would-be bidders should ‘identify incentive programs available for the project at the state/province and local levels.’

The company asks cities to ‘outline the type of incentive (i.e. land, site preparation, tax credits/exemptions, relocation grants, workforce grants, utility incentives/grants, permitting, and fee reductions) and the amount. The initial cost and ongoing cost of doing business are critical decision drivers.’

The deadline for initial bids expires later today. The state of New Jersey has already made clear it will offer $7bn in tax breaks to support Newark’s bid to host the new Amazon offices, while Philadelphia is offering 10 years of property tax abatement.

Previously, Wisconsin offered $3bn in tax subsidies earlier this year to encourage another hi tech company, Foxconn, to set up in the state.

However, there has been a backlash over Amazon’s apparent requirement for incentives.

In an open letter to Amazon CEO Jeff Bezos, 73 civic leaders from cities and states including Arizona, California, Chicago, New Orleans and Tennessee said: ‘It goes without saying that you can’t have great public services without paying taxes. We know you’ve had a little problem grasping that, sometimes.’

The letter sets out what its authors see as Amazon’s responsibilities, which include paying all property taxes, and sales taxes on the HQ2’s building materials, machinery and equipment.

The letter to Bezos continues: ‘And although you’ve finally this year started collecting sales taxes on your own goods in every state with a sales tax, you need to also do that on sales conducted on your platform by third parties.

‘You must not seek to keep your employees’ state personal income taxes, nor should you seek the right to sell your corporate income tax credits to other companies.’

Amazon’s RFP for HQ2 is here.

The ‘wishlist’ open letter to Jeff Bezos is here.

Report by Pat Sweet