Boston officials agreed to give Amazon $5 million in tax breaks if the Seattle e-commerce giant brings 2,000 jobs and occupies most or all of a new office building in the city, The Boston Globe reports.
The city would grant Amazon the tax breaks over 15 years. If Amazon adds 4,000 jobs and expands to a second office building, an additional $5 million in tax breaks could be possible.
Cities regularly grant tax breaks to companies as part of their economic development strategies but the news out of Boston comes at a time when government incentives and Amazon are under a microscope. Amazon’s extraordinary search for a second headquarters and public request for incentives from contending cities have been heavily scrutinized.
Leading economists even created a non-aggression pact urging the 20 cities in the running for Amazon HQ2 to deny the company’s request for incentives. City council members from New York City, Indianapolis, and Austin have signed the pact.
Unlike some of its competitors, Boston’s HQ2 proposal is open to the public. The city proposes incentives that would give Amazon real estate tax relief and fund a tech talent pipeline.