Kroger’s new tax deal from the state expected to help Hamilton

The Kroger Co. expects to create 15 full-time jobs in Blue Ash and Hamilton, in Hamilton and Butler counties, respectively. The state expects those new jobs to generate $1.5 million in new annual payroll while retaining $58.2 million in existing payroll as a result of the company’s data center project in Blue Ash and Hamilton, according to the Ohio Tax Credit Authority.  NICK GRAHAM/STAFF

The Kroger Co. expects to create 15 full-time jobs in Blue Ash and Hamilton, in Hamilton and Butler counties, respectively. The state expects those new jobs to generate $1.5 million in new annual payroll while retaining $58.2 million in existing payroll as a result of the company’s data center project in Blue Ash and Hamilton, according to the Ohio Tax Credit Authority. NICK GRAHAM/STAFF

The Kroger Co. expects to create 15 full-time jobs in Blue Ash and Hamilton as part of a deal for tax credits awarded this week.

The state expects those new jobs to generate $1.5 million in new annual payroll while retaining $58.2 million in existing payroll as a result of the company’s data center project in Blue Ash and Hamilton, according to the Ohio Tax Credit Authority.

The TCA approved a 75 percent, 15-year Data Center Sales Tax Exemption for that project on Monday.

Kroger’s Hamilton call center was consolidated with the company’snew facility in Blue Ash in 2016, but the Cincinnati-based company has maintained a data center in Hamilton’s Vora Technology Park for more than a decade.

“The city believes that they have the potential to become an even greater consumer for the city’s electric utility, and potentially add a number of highly skilled IT professionals at the Vora Technology Park facility,” said Jody Gunderson, Hamilton’s director of economic development. “The details of this project are still being worked through and a number of factors under consideration before we know the full impact this project will have on Hamilton.”

Gunderson said it is too early in the process to determine how Kroger will end up apportioning workers to each location.

“That is something they are currently working through,” he said.

Kroger said the tax exemption covers equipment purchased for qualifying data center projects from Ohio sales tax.

“Kroger continues to invest in technology and digital capabilities to advance our seamless ecosystem for our customers that combines the best of the physical store experience with the digital experience,” said Yael Cosset, Kroger’s chief technology and digital officer.

“We thank JobsOhio, Ohio Development Services Agency, REDI Cincinnati and the cities of Blue Ash and Hamilton for their support as this tax exemption will allow Kroger to continue making meaningful technology and digital investments that will benefit local customers and those who shop at our stores across the country.”

Online grocery shopping is expected to grow by 40 percent in 2020 alone, and Kroger is primed to benefit from that growth by investing in its digital future, REDI Cincinnati President and CEO Kimm Lauterbach said in the release.

Kroger’s investments in its e-commerce channels have allowed the company to accelerate its digital offerings during the COVID-19 pandemic, it said in the release.