Dive Brief:

• Amazon’s deal on a 17-year lease across from the Empire State Building includes $5 million in tax credits from the state of New York. 

• A state agency, Empire State Development Corp., apparently helped seal the deal for the e-retail giant to locate in Herald Square with its lure of tax credits in a program designed to boost employment.

• The property will be mostly corporate offices and, as reported earlier, possibly a distribution center.

Dive Insight:

Several cities have programs like this one by the state of New York, where businesses enjoy significant tax credits over a period of time as long as they demonstrate certain employment or other benefits to the area. In this deal, Amazon must provide 500 jobs and can take advantage of the credits over 10 years. Amazon has signed the lease with Vornado Realty Trust and is taking over all of the office space available in the building across from the Empire State Building in Herald Square.