Amazon HQ2 Tax Breaks

About Amazon HQ2 Tax Breaks

Amazon announced its second headquarters, HQ2, in 2017, inviting cities to compete with tax incentive offers. Over 200 cities submitted proposals. Amazon selected Northern Virginia and Long Island City, New York. Virginia offered 573 million in incentives, and New York offered 1.5 billion. The New York deal included 3 billion in total incentives. The New York deal was met with fierce opposition from local politicians and residents, particularly Representative Alexandria Ocasio Cortez. Amazon cancelled the New York location in February 2019, citing opposition. Amazon proceeded with the Virginia location. The HQ2 competition highlighted how large corporations can extract massive tax concessions from desperate cities. Critics argued the incentives were excessive and that Amazon would have benefited the local economy regardless, making the incentives unnecessary.