Amazon’s Tax Expense Drops to $1.2B After $7.8B Relief Under New Law
Amazon’s federal tax expense dropped 87% to $1.2B in 2025 from $9B in 2024 after $7.8B in tax relief under the new law. The company said expanded depreciation and R&D credits helped offset profits and it invested $340B in the U.S.
1. Tax Expense Plummets
Amazon’s federal tax expense plummeted to $1.2 billion in 2025, an 87% decline from $9 billion in 2024, reflecting a dramatic shift in the company’s tax obligations.
2. Drivers of Tax Relief
The reduction was driven by $7.8 billion in tax relief under the recent law, primarily through expanded depreciation breaks and R&D incentives that significantly lowered the effective rate.
3. U.S. Investment Surge
Alongside tax savings, Amazon invested $340 billion in U.S. operations in 2025, spanning infrastructure, cloud services and logistics, underscoring continued domestic capital deployment despite reduced tax burden.
4. Political Backlash
Senator Elizabeth Warren criticized the magnitude of the tax break as equivalent to 100,000 years of median household income, intensifying debate over corporate tax policy and its impact on public spending.