Seriously, Where’s The $28M In Tax Incentives You Owe Us?
General Motors received considerable attention when it closed its long-standing Lordstown, Ohio plant in early 2019. An unwelcome press on Lordstown sued GM until 2020 despite the facility finding a new life as the home of Lordstown Motors. The saga for GM is not yet over, as now the automaker must repay Ohio no less than $ 28 million for tax incentives received on a plant it no longer owns.
That’s the crux of a press release released today by the Ohio Tax Credit Authority. In 2008, GM and Ohio struck a deal that earned the automaker a total of $ 60.3 million in state tax credits. The deal required GM to retain 3,700 employees at its Lordstown facility until 2028, but that clearly hasn’t happened and Ohio now wants some of that money back.
“GM has been a major employer in the state of Ohio for decades, investing in both the economy and our workforce,” said Ohio Governor Mike DeWine. “While the decision to close the Lordstown plant was terrible news for workers and their families in the Mahoning Valley, today’s announcement will bring relief as well as an investment from GM that committed to investing $ 12 million in the local community for workforce, education and infrastructure needs. “
According to the press release, GM is committed to repairing the large refund.
GM has also pledged to return $ 28 million to the state for job creation and retention credits. GM remains involved in automobile production in Lordstown to produce batteries for electric vehicles which is also good news for the future of the automotive industry. “
Asked directly about the reimbursement of tax incentives, a GM spokesperson sent the following statement to Motor1.com:
“We appreciate the recognition by the Ohio Tax Credit Authority of GM’s significant manufacturing presence in the state of Ohio, including our significant investments in the Mahoning Valley, when it made a decision on the matter. Lordstown Tax Credit and Ultium Cells LLC’s Job Creation Incentive Application.
GM has invested more than $ 3.3 billion in Ohio since 2009. Meanwhile, GM and LG Chem, through joint venture Ultium Cells LLC, are building more state-of-the-art battery cell manufacturing plant $ 2.2 billion to Lordstown, which will create more than 1,100 new jobs. Construction of the facility is well underway. The new battery cell manufacturing plant will play a critical role in GM’s commitment to a fully electric future.
We look forward to continuing to develop our business relationship with the State of Ohio on matters of importance to the State of Ohio, GM and our operations. “
Coincidentally, GM announced a $ 71 million investment in two of its manufacturing plants in Ohio. The automaker will spend $ 39 million at the Toledo transmission plant and $ 32 million at its casting plant in Defiance. GM says the investment will keep 240 manufacturing jobs in the United States, with the investment focusing on upgrading and improving production for the eight-speed automatic transmission and future engine casting.
This investment is do not part of the $ 28 million tax credit refund.