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| Amazon enjoys the usual tax breaks |
Amazon received a record tax break this year as local authorities tried to persuade the online shopping giant to expand its overnight or same-day delivery network in its area.
According to Washington, D.C.'s economic development regulator, Good Jobs First, the company received nearly $650 million in tax credits from state and local governments in 2021, including grants, tax credits and other incentives.
With three months remaining in 2021, the company recorded its largest annual revenue since data collection began by Good Jobs First in 2000. No incentives for non-logistical projects such as film production and office expansion.
The company won a package worth more than $750 million in 2019 to build a second headquarters in Arlington, Virginia.
The massive transactions on Amazon's delivery network came as local authorities struggled to rebuild the economy and job market after the coronavirus pandemic.
The company has defended the practice, citing its track record of creating jobs. “These incentives generally apply to any company that meets the criteria, and companies can only receive these incentives after creating jobs and making capital investments,” she said.
In 2020 alone, we invested $150 billion in the United States, opened over 100 locations, and created over 400,000 jobs in over 40 states.
The exception to Amazon is the expansion of the delivery network
The company also cited a statement from the Progressive Policy Institute (PPI) calling it an investment champion. Like many other large companies, Amazon is a donor to the Institute for Progressive Policy.
The think tank did not disclose the amount received by the company. However, she said her research is based on published financial data and uses a clearly documented methodology.
The company has received at least $4.1 billion in awards since 2000, according to Good Jobs First. The e-commerce giant is adding new warehouses to shorten delivery times to additional markets in the United States.
The company's investments decreased from $16.8 billion in 2019 to $40.1 billion in 2020. At the end of the second quarter of this year, Amazon said that investments amounted to $26.4 billion.
At the same time, the company often seeks incentives from local officials through external developers.