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Garden State Times

Tuesday, December 3, 2024

New Jersey local governments give Amazon $45 million in tax breaks

Edited 1 mike mareen stock adobe

Mike Mareen/Adobe Stock Photo

Mike Mareen/Adobe Stock Photo

Amazon received $45 million in subsidies, tax breaks, and grants from New Jersey communities for three projects.

Advocacy group Good Jobs First, which opposes such subsidies, found New Jersey provided the 20th-highest amount of grants and breaks among U.S. states to the nearly $1-trillion company.

New Jersey is ranked behind Louisiana (7 projects/$49 million) and ahead of Florida (13 projects/$43 million), Connecticut (3 projects/$38 million), and North Carolina (5 projects/$31 million).

The most expensive subsidy provided in New Jersey was by the Newark government, which offered $39 million to Amazon in state grants. The money was earmarked for a sortation center at the Newark airport with a promised 1,000 jobs. The deal collapsed in 2022. While no official reason was given for the cancellation, labor groups and environmental advocates had heavily criticized the project. 

The second largest subsidy was worth $7 million for a Media Production Tax Credit.

There was one development which received an undisclosed subsidy amount.

In the late 2010's, New Jersey’s economic strategy and subsidies policy was found to be corrupt and full of overpayments and fraudulent applications. 

Despite the controversies, the state enacted two new programs, Emerge and Aspire, both costing the population up to $1.1 billion a year.

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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