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Thursday, November 21, 2024

New York state local governments give Amazon $671 million in tax breaks, third among states

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Maciej Bledowski/Adobe Stock Photo

Maciej Bledowski/Adobe Stock Photo

Amazon received $671 million in subsidies, tax breaks, and grants from New York communities for 22 projects.

Advocacy group Good Jobs First, which opposes such subsidies, found New York provided the third-highest amount of grants and breaks among U.S. states to the nearly $1-trillion company.

New York is ranked behind Illinois (16 projects/$733 million) and ahead of Washington (10 projects/$609 million), Oregon (32 projects/$483 million), and Texas (13 projects/$306 million).

The most expensive subsidy provided in New York was by the Gates government, which offered $151 million to Amazon for various 15-year tax exemptions. However, the 2.6 million-square-foot delivery station which received the subsidies was delayed in the fourth quarter of 2022, according to local reports from 13WHAM New York

The second largest subsidy was worth $124 million in subsidies, property tax exemptions and mortgage recording abatements from the Niagara local government. 

A much smaller project, a distribution center in Hamburg which received nearly $7 million in subsidies, was completed but sat empty as of August, 2022. The company also delayed its request for an extension on sales tax breaks for the facility, according to Buffalo News.

There were no developments which received undisclosed subsidy amounts.

New York's economy is essentially split in two, between the bustling New York City and the rest of the state. New York City alone provides nearly $4 billion in tax breaks.  

Evaluations of provided subsidies are rare, leading to a lack of information about how successful each subsidy was.

As of Nov. 17, 2022, Amazon had received 310 separate tax break deals from local and state governments across the U.S., totaling $5.14 billion. The state of Virginia was home to the largest portion of these taxpayer-subsidized Amazon projects. 

Amazon Tax Breaks Across the U.S.
State# ProjectsTotal Subsidy
Virginia20$824,291,799
Illinois16$732,973,199
New York22$671,446,986
Washington10$608,644,670
Oregon32$483,459,645
Texas13$305,959,751
Ohio14$172,418,555
Tennessee20$166,030,438
Kentucky21$111,789,976
Missouri2$110,600,000
Massachusetts5$86,979,275
California12$84,541,000
Michigan5$82,352,146
Maryland3$68,425,000
South Carolina5$64,297,962
Indiana15$60,389,500
Alabama2$56,500,000
Wisconsin6$54,135,500
Louisiana7$48,967,587
New Jersey3$45,422,240
Florida13$43,239,475
Connecticut3$37,700,000
North Carolina5$31,186,975
Pennsylvania4$29,557,871
Georgia5$27,115,929
Mississippi3$23,925,795
Iowa2$22,400,000
Kansas2$21,802,522
Colorado9$15,779,091
Oklahoma5$11,207,651
Utah3$9,780,226
Delaware2$7,972,500
Minnesota1$5,700,000
New Mexico1$5,244,071
Arizona2$5,139,671
Nevada5$3,251,324
Rhode Island1$2,700,000
Maine11$578,828

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