The state signed off Monday on tax incentives for Amazon worth up to $12.1 million for the internet retailer's planned distribution centers in Akron and near Toledo.
Amazon stands to collect $7.1 million for the Akron center and $5 million for the one in Rossford, according to the Ohio Tax Credit Authority, which approved both projects, expected to create a combined 2,500 jobs.
The incentives are based on how many workers Amazon hires. The retailer will receive a portion of the state income tax that the new workers pay.
In Akron, Amazon is constructing a fulfillment center at the site of the former Rolling Acres Mall, hiring 1,500 workers with a total payroll of $46.8 million. In Rossford, Amazon will hire 1,000 workers with a payroll of $31.2 million.
The new centers will be the seventh and eighth for Amazon in Ohio. Three of those are in central Ohio.
Central Ohio also hosts Amazon data centers, and the company has invested in wind farms in the northwestern part of the state. In addition, Amazon has air cargo and package sorting operations in Wilmington in the southwestern part of the state.
Amazon says it now has 8,500 workers in Ohio and has invested $5 billion in the state, including compensation for workers.
Amazon's jobs start at $15 an hour. Benefits include tuition reimbursement, health care and paid parental leave.
In Akron, Amazon has pledged to sustain $30 million in annual payroll for 10 years. In exchange, the city agreed to a 30-year tax rebate for Amazon. The city would divert future taxes on the improved property into a special fund, out of which Amazon would be reimbursed the more than $17 million paid to buy the land plus any acquisition and demolition costs. If Amazon misses its $30 million payroll guarantee, a calculation would lower the tax rebate proportionally.
Amazon is beginning construction of the nearly 2.7 million-square-foot Akron distribution center in September.
An exact timeline for construction is yet to be determined, but local officials say the facility could be operational by Christmas 2020.
Overall, the state tax credit authority approved 12 projects Monday that will result in 3,962 new jobs and the retention of 717 jobs. The new jobs have an annual payroll of $153 million, and the projects will generate investment of $705 million.
Contact Mark Williams at email@example.com. On Twitter: @BizMarkWilliams.