Indiana Economic Development Corp. and Economic Development Agencies and Tax Abatements and Economic Development Incentives and Job Creation and Government & Economic Development and Economic Development

Newegg lands incentives from state for distribution center

November 20, 2013

Online electronics retailer Newegg Inc., which reached an inducement deal with the city in September to open a distribution center in Indianapolis, has landed even more incentives from the state, the Indiana Economic Development Corp. announced Wednesday.

As IBJ reported Sept. 13, California-based Newegg plans a Midwest fulfillment and distribution center at 6161 Decatur Boulevard in Ameriplex World Connect park that would employ 150 people making an average of $11.50 per hour by the end of 2015.

The company plans to spend $20 million to lease, renovate and equip nearly 500,000 square feet.  The center should be open by the end of next year.

The IEDC offered Newegg up to $1 million in conditional tax credits and up to $100,000 in training grants, based on the company's job-creation plans.

Newegg previously received approval for a seven-year partial tax abatement from the Metropolitan Development Commission.

The Newegg investment would add $5.9 million to the local tax base, and the company would pay $441,508 in personal property taxes over the life of the seven-year abatement, according to Department of Metropolitan Development. The abatement would save the company $723,421, or 62 percent of its tax bill, over that period.
After the abatement expires, the company is expected to pay $134,415 in annual personal property taxes.

The Indianapolis order-fulfillment center will enable Newegg to handle 30,000 different products and ship tens of thousands of orders daily to Midwestern customers, with production increases likely during peak seasons.

Positions will include managers and forklift operators. Other jobs will be available in receiving, order picking and packing, shipping and clerical-related operations.

Newegg, founded in 2001, says it is the country's leading electronics-focused Web retailer, with 22 million registered customers and $2.5 billion in annual revenue. It has about 2,600 employees worldwide.


 

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