Amazon invests $ 1.1 billion in Ohio, USA

The company’s plans include the creation of a data center and complete centers with thousands of new jobs. (Fulfillment centers are created to perform operations from the moment of placing an order to the time of its delivery to the buyer.)

To lure Amazon into building new data centers in central Ohio, USA, it took only $ 81 million in tax breaks, as well as a 100% exemption from sales tax and a 75% credit on income tax over 15 years.

Amazon said it plans to open 1,000 jobs in the region in the future. The data center itself creates 120 total jobs, and the model for the Amazon complete center, as a rule, provides for about 200 positions. In the process of analyzing tax breaks, Amazon indicated that the average annual salary in the data center would be $ 80,000 (according to Ohio authorities). This is significantly higher than the average salary in Amazon complete centers. The company did not say where almost 700 more jobs would come from.

Investments in the amount of $ 1.1 billion are expected within three years as the data center building and fulfillment center are being built. The density of the local population and proximity to the main region of the center of the country served as additional reasons for choosing this particular building site. As usually happens in such cases, state officials praised their tax advantages package and talked about how great a company like Amazon would be to local business — standard mantras, of which none have yet been implemented.

Also in the best traditions of the law of unforeseen consequences, the arrival of Amazon in the region means that Ohio buyers purchasing goods on the Amazon online platform will pay sales tax, and this rule takes effect immediately. Ohio has adopted a progressive sales tax rate, depending on location, which ranges from 5.75% to 8.75%.

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