Arlington County Statement on Amazon Incentives for FY 2025

For the first time, Amazon will receive an incentive payment based on the performance of the Transit Occupancy Tax (TOT) revenue(PDF, 128KB) in Arlington County. This milestone reflects the positive impact of Amazon’s investments in the County and its position as a significant and valued member of Arlington’s business community.

Amazon has created thousands of jobs and completed construction of the first phase of its Arlington headquarters, as well as provided support for local nonprofit organizations and deep social impact in the areas of housing, workforce development, education, arts and cultural events.

Based on the performance agreement approved by the County Board in March 2019, Amazon is eligible for incentive payments from the Transient Occupancy Tax (TOT) Grant when: 1) Amazon achieves the annual office occupancy targets outlined in the Performance Agreement between the company and the County, and 2) TOT revenue exceeds the baseline of $24,972,737.

Amazon has met or exceeded its occupancy targets every year since the beginning of the 15-year performance period. County TOT revenue exceeded the baseline amount for the first time in FY 2025. County TOT revenue totaled $25,517,705, which is $544,968 above the baseline. Consistent with the Performance Agreement, Arlington has calculated a grant payment of $81,745, equal to 15% of the revenue above the baseline. The County will notify Amazon of the payment by Aug. 31, 2025, with payment to the company expected in September.

Also, for the second year, funding is available as part of the Strategic Infrastructure Investment (SII) agreement between the County and Amazon. The SII is not a grant to the company, but rather, a mechanism to fund public investment in infrastructure needs around Amazon’s headquarters in National Landing. The SII is calculated annually as 50% of revenue collected through the National Landing Tax Increment Financing (TIF) district that is above the established baseline amount. For FY 2025, the SII totals $355,510.

The County will hold its annual SII meeting with Amazon to solicit input on preferred capital projects to support the continued realization of infrastructure plans around their headquarters. Amazon’s input on how to spend the SII funds is considered by the County Board as part of the Capital Improvement Plan (CIP) planning process.

Arlington is committed to our collaborative relationship with Amazon, and we look forward to continued innovation and growth within our community because of the company’s presence.