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Monday, May 20, 2024

Indiana local governments give Amazon $60 million in tax breaks

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Brett/Adobe Stock Photo

Brett/Adobe Stock Photo

Amazon received $60 million in subsidies, tax breaks, and grants from Indiana communities for 15 projects.

Advocacy group Good Jobs First, which opposes such subsidies, found Indiana provided the 16th-highest amount of grants and breaks among U.S. states to the nearly $1-trillion company.

Indiana is ranked behind South Carolina (5 projects/$64 million) and ahead of Alabama (2 projects/$57 million), Wisconsin (6 projects/$54 million), and Louisiana (7 projects/$49 million).

The most expensive subsidy provided in Indiana was by the Elkhart government, which offered $17 million to Amazon through tax increment financing for road relocation, as well as an undisclosed amount for a 10-year property tax abatement. This abatement equals 100 percent of property taxes in the first year. 

The second largest subsidy was worth $16 million for property tax deductions in Fort Wayne.

Indiana’s largest and most expensive subsidy program is called the Research Expense Credit, which provides roughly $100 million annually. However, a report about the effectiveness of the credit was inconclusive. 

Transparency laws in Indiana are fairly thorough and publicly available for taxpayers. 

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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