Why did New York offer Amazon 3 times the tax breaks Virginia did?

John Schoettler, Vice President for Global Real Estate at Amazon, and New York Governor Andrew Cuomo.
(Image credit: Drew Angerer/Getty Images)

Amazon wants to evenly divide its second headquarters between New York City and the Washington D.C. area. But the two cities aren't exactly splitting the very large bill.

In the company's Tuesday announcement revealing that its HQ2 will land in New York's Long Island City and northern Virginia's Crystal City, Amazon disclosed that New York would deliver $1.525 billion in "performance-based tax incentives" for its job-creating investment. Virginia, meanwhile, would deliver just $573 million — a third of New York's deal, Axios' Felix Salmon pointed out.

Earlier reports of Amazon's imminent expansion stoked fears of what could happen to one of New York's more affordable neighborhoods. But New York City Mayor Bill de Blasio wasn't worried, saying at a Tuesday press conference that the "synergy" created by putting HQ2 next to one of America's "biggest public housing developments" would be "extraordinary." De Blasio and New York Gov. Andrew Cuomo (D) both deflected questions about whether Amazon's investment would fix the city's broken subway system at the conference, instead suggesting ferries would make it plenty easy to get to the riverside Long Island City.

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Meanwhile, New York City Council Speaker Corey Johnson released a statement pondering "why a company as rich as Amazon would need nearly $2 billion in public money," especially since New York is struggling to fund public needs.

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Perhaps New York delivered an additional $1 billion in breaks to preserve the naming rights to Long Island City, unlike what's happening in Virginia.

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Kathryn Krawczyk

Kathryn is a graduate of Syracuse University, with degrees in magazine journalism and information technology, along with hours to earn another degree after working at SU's independent paper The Daily Orange. She's currently recovering from a horse addiction while living in New York City, and likes to share her extremely dry sense of humor on Twitter.