Macy’s project receives tax credit
Expansion at Valley facility expected to create 417 new jobs
NORTH JACKSON — Macy’s is proposing a $30 million expansion project at its distribution facility in the township that would add 417 new jobs and create a fulfillment center.
The Ohio Tax Credit Authority on Monday approved the 1.472 percent, eight-year tax credit.
“We’ve been working with JobsOhio and other agencies on a possible collaboration to add to Macy’s facility in Jackson Township,” Andrea Schwartz, the company’s senior director of media relations, said. “We’re delighted the tax authority approved the proposal (Monday) and look forward to sharing further information Wednesday.”
Walter Good, Team NEO’s managing director of project management, who spoke on behalf of the company at the tax authority meeting, said Macy’s Corporate Services LLC is looking at locations in West Virginia and Illinois. But, he said, the tax credit is “the major factor for the company moving forward in Ohio.”
The company wants to add 417 jobs with an annual payroll of $16,775,000 by Dec. 31, 2023, and retain 55 positions with a $2.1 million annual payroll there with a $29,973,625 expansion, Good said.
The location currently “coordinates merchandise distribution and logistics functions for Macy’s stores,” Good said. “The proposed expansion of the Jackson Township facility involves establishing a fulfillment center at this location.”
The estimated value of the tax credit is $1,855,000, according to Lisa Colbert, a tax credit authority spokeswoman.
“As always, this is an estimated value of the potential tax credit if all elements approved by the tax credit authority are met,” she said. “This is not an actual tax credit. The Job Creation Tax Credit is a performance-based credit. So, the actual value of the tax credit is based on jobs created and new payroll tax generated as verified.”
The tax credit is retroactive to Jan. 1 and ends Dec. 31, 2028.
The $29,973,625 expense would be for building costs, new machinery and equipment, according to a state document.
The location, about 900,000 square feet in size, serves as a distribution hub for Macy’s stores in Ohio, Pennsylvania and West Virginia.
Macy’s, headquartered in New York City, has three retail brands: Macy’s, Bloomingdale’s and Bluemercury. It operates 764 stores, including Macy’s in Boardman and Niles, and has about 90,000 employees, according to its corporate website.
The Ohio Tax Credit Authority consists of taxation and economic development professionals from throughout the state, and is responsible for reviewing and approving applications for tax credit assistance.