The Ohio Tax Credit Authority approved a forbearance plan to repay $28 million of the original tax credits, then provide another $12 million in community support by December 2022.
The state will come up with a repayment schedule. Members said if GM’s plans locally fall into place, that’s good but if they fail, the tax credit authority will still be able to go after the rest of the original $60 million amount.
GM was given the tax credits in 2009 as part of an agreement to keep the plant open for 30 years, but closed it 10 years later.
GM released the following statement to FOX 8 Monday:
“We appreciate the Ohio Tax Credit Authority recognizing GM’s substantial manufacturing presence across the State of Ohio, including our significant investments in the Mahoning Valley, when making a decision on the Lordstown tax credit issue and the Ultium Cells LLC job creation incentives application.
GM has invested more than $3.3 billion in Ohio since 2009. Separately, GM and LG Chem, via the Ultium Cells LLC joint venture, are building a more than $2.2 billion, state-of-the-art, battery cell manufacturing plant in Lordstown that 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 an all-electric future.
We look forward to continuing to build our business relationship with the State of Ohio on issues that are important to the State of Ohio, GM and our operations.”
Ohio Attorney General Dave Yost was happy to hear the decision.
“It’s good news to hear that GM will repay the financial incentives it was offered. Thanks to Governor DeWine and his team for staying on top of this business relationship and holding them accountable. I look forward to seeing the details and watching further business relations flourish in the state.”
The Ohio Tax Credit Authority also approved a 1.950%, 15-year job creation tax credit for Ultium Cells, LLC, which is building a plant off of Route 45 in Lordstown. The tax credit will go into effect in 2023.
The battery plant is expected to create 1,000 full-time jobs, generating $45 million in new annual payroll.
Ultium Cells is a joint venture between GM and LG Chem. The facility will manufacture lithium-ion batteries.
Related video, below: Gov. Mike DeWine’s visit to Lordstown Motor Corp. in June.
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