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6 INCENTIVES income tax credits, claimed on the corporate income tax return. They are available to those who hire co-op students for work placements as part of a recognized college or university program and recent graduates of registered co-op education programs. The following conditions apply to all components: • Work must be performed primarily in Manitoba. • The employer must reside in or have a permanent establishment in Manitoba. • There is no limit on the number of hires. • Eligible employer wage costs are net of other government assistance. Assuming Amazon HQ2 hires 300 co-op students per year and 100 co-op graduates per year, it could realize tax credits notionally valued at up to $625,000 per year, or up to $10M over a 16-year buildout. Actual value will be dependent on the actual number of eligible co-op student and co-op graduate hires, and actual wage costs. • Green Energy Equipment Tax Credit This refundable tax credit promotes the production and purchase of machinery and equipment used to generate renewable energy in Manitoba. Eligible equipment includes geothermal heating equipment, solar thermal heating equipment and gasification and biomass-fuel energy equipment, installed in Manitoba and used in a business. This program is administered by Canada Revenue Agency and claimed on the corporate income tax return. Assuming that Amazon HQ2 invests $10 M per year in green energy technologies for the duration of its 16 year buildout, it could realize tax credits notionally valued at $1M per year, or up to $16M over the 16-year buildout. Actual value will be dependent on actual investment in eligible equipment and subject to standard program conditions. • Manitoba Interactive Digital Media Tax Credit This is a refundable income tax credit for companies that develop and produce eligible interactive digital media projects in Manitoba. Eligible projects must be approved by the Manitoba Department of Growth, Enterprise and Trade. The tax credit is administered by Canada Revenue Agency and claimed with the corporate income tax return. The program is currently scheduled to expire at the end of 2022. Assuming Amazon HQ2 expends $3M per year on wages for eligible digital media projects, it could realize tax credits notionally valued at $1.05M per year, or up to $5.25M over the 5 years to 2022. Actual value is dependent on actual wages spent on eligible digital media development projects and subject to standard program conditions. • Training Support To help ensure that Amazon HQ2 has access to top talent for its Winnipeg operations, the Province of Manitoba may offer non-repayable financial assistance to support training costs associated with the creation of specified new, full-time equivalent (FTE) positions in the province. Assuming Amazon HQ2 trains 1,000 eligible FTE's per year for 6 years, Manitoba may consider non-repayable assistance notionally valued at up to $5M per year, for up to 6 years, for a total notional value of up to $30 M. This figure is based on a maximum program allocation of $5,000 per new, eligible FTE position, to support training costs. It assumes a program duration of 6 years, which is estimated to follow the Amazon HQ2 project to the end of Phase 2 of its buildout. Actual value will be dependent on actual training costs and on the number of eligible new FTE's trained. Funding assistance will be contingent on receipt of a mutually acceptable training plan, cost estimates, and a signed agreement between Amazon and the Manitoba Department of Education and Training. Funding assistance will not exceed actual cost of training, nor can it be used to cover the wage costs of trainees. OTHER SUPPORT Tax Increment Financing Winnipeg has supported several transformational private sector investments primarily in our downtown through the use of Tax Increment Financing (TIF). Under a TIF arrangement the City agrees to reinvest the incremental property taxes generated from the redevelopment of a property into the development itself for a specified time period. We would be pleased to consider the use of TIF to support the HQ2, subject to a review of Amazon's real estate development plan for its HQ2 headquarters in Winnipeg. TIF funding is not yet quantified, but could be significant. A recent $400 million development in Winnipeg qualified for nearly $20 million in TIF funding. Please note that any TIF arrangement for Amazon would ultimately be subject to review and approval of City Council. Land Officials from the City of Winnipeg would be pleased to work with Amazon to assist in the assembly of land for the HQ2 initiative, which could potentially include surplus City land for this purpose. As is the case with TIF, any transfer of City land to Amazon for HQ2 must first be reviewed and approved by City Council. City officials 50 T E A M M A N I T O B A

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