eBay tells Austin it wants to add 1,000 jobs here

Nov 14, 2013
Austin Business Journal

The city of Austin will consider whether to sponsor an application by Austin's eBay Inc. location for state tax rebates in exchange for a large local expansion and job retention


As part of the deal, eBay (Nasdaq: EBAY) plans to hire 1,000 new customer support employees and technical engineers, as well as retain 500 current employees, according to city documents. The 400 new hires and 500 retained employees will have an average wage of $30,000 to $35,000, and the 600 technical engineers are to have an average wage of $100,000, documents show


The company is also proposing a capital investment of $8 million by leasing 66,000 square feet of office space through a long-term lease in North Austin, according to city files. City Council is scheduled to vote on the matter at its Nov. 21 meeting


In 2011, the company received incentives from state and local entities to expand its PayPal division by 1,000 jobs


The Texas Enterprise Zone Program, administered by the Governor's office Economic Development and Tourism team, allows local municipalities or counties to endorse companies to apply for a designation that grants tax refunds. The program is targeted at companies in economically disadvantaged zones


The amount of the tax rebate is tied to the jobs created and capital investment by the company. It's not immediately clear how much of an incentive the designation could provide for eBay. The Enterprise Zone's website lists a maximum reward of $1.25 million for projects within the range of eBay's, and a maximum reward of $2,500 per job created


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