Amazon to receive WEDC tax credits for Oak Creek project

Freeman Staff

March 26, 2019

OAK CREEK — Amazon will be the recipient of up to $7.5 million in tax credits for job creation and capital investment for the facility it plans to build in Oak Creek.

The Wisconsin Economic Development Corporation announced Monday the approval of the tax credits for Amazon, which plans to build a 640,000-square-foot fulfillment center in Oak Creek. The project is expected to create 1,500 jobs.

Amazon plans to build the $200 million facility in the Ryan Business Park at Ryan Road and Interstate 94.

“I thank Amazon for its continued commitment to growing in Wisconsin,” said Mark R. Hogan, secretary and CEO of WEDC. “Amazon’s existing distribution center in Kenosha County, which opened in 2014, is a true Wisconsin success story, and the company’s decision to make another major investment in our state is a testament to Wisconsin’s strong business climate and outstanding workforce.”

The amount of credits the company will receive from the WEDC is contingent upon the number of jobs created and the amount of capital investment the company makes through 2024.

All tax credits are “pay as you grow,” which means the company must create the jobs and invest the capital before it can receive credits.

The Oak Creek facility will be the first-of-its-kind robotics sorting center for Amazon, according to the announcement. Once built, the Oak Creek center will be Amazon’s largest investment in Wisconsin in terms of capital expenditures and new jobs.

The Amazon associates at the facility pick, pack and ship small items such as books, household items and toys, a process that will utilize Amazon Robotics technology.

“We’re delighted that one of the world’s most successful businesses has cast another vote of confidence in Wisconsin,” said Gale Klappa, co-chair of the Milwaukee 7 regional economic development organization and executive chairman of WEC Energy Group. “This significant investment by Amazon speaks to the competitiveness of our region for global companies and to the strong upward trajectory of our economy.”

In addition to the 1,500 jobs expected to be created by the company in Oak Creek, an economic modeling study estimates the project could indirectly generate 792 additional jobs in the region. Those 2,292 combined jobs would generate nearly $3 million in state income tax revenue annually.