Investment and Politics: Amazon Cancels NYC HQ2 Plans

In February 2019, Amazon announced it was canceling its plans to build a major headquarters (HQ2) in Long Island City, New York, despite a nearly $3 billion package of tax breaks and other incentives offered by state and local governments. The decision came in response to significant opposition from local politicians, labor unions, and community groups.

This event highlighted the complex political and community governance challenges that major technology corporations can face during expansion. It also fueled a broader public debate about the value of providing substantial public incentives to large corporations and the meaning of corporate citizenship. Following the cancellation, Amazon proceeded with its alternative HQ2 location in the National Landing area of Arlington, Virginia.