Amazon Gets $1.5B In Incentives To Move To NYC

NEW YORK, NY – Amazon is getting $1.5 billion in tax breaks and grants to move to New York City, the massive company said in a blog post announcing the move Tuesday.

The money comes in the form of incentives, Amazon said. In return, it is promising to bring 25,000 jobs to Long Island City.

"Amazon will receive performance-based direct incentives of $1.525 billion based on the company creating 25,000 jobs in Long Island City," the company said in a blog post announcing the deal.

"This includes a refundable tax credit through New York State’s Excelsior Program of up to $1.2 billion calculated as a percentage of the salaries Amazon expects to pay employees over the next 10 years, which equates to $48,000 per job for 25,000 jobs with an average wage of over $150,000; and a cash grant from Empire State Development of $325 million based on the square footage of buildings occupied in the next 10 years.

"Amazon will receive these incentives over the next decade based on the incremental jobs it creates each year and as it reaches building occupancy targets. The company will separately apply for as-of-right incentives including New York City’s Industrial & Commercial Abatement Program (ICAP) and New York City’s Relocation and Employment Assistance Program (REAP)."

Amazon announced it would split its new headquarters between Long Island City and Arlington, Virginia. Though celebrated by New York City's Mayor Bill de Blasio and Governor Andrew Cuomo, many have expressed serious concerns.

(Lead image: Photo by David McNew/Getty Images)