COLUMBUS, Ohio — On Monday, the state of Ohio announced that General Motors (GM) will pay back millions of dollars in tax incentives after the company closed its Lordstown plant.
The Ohio Tax Credit Authority approved a recommendation by the Ohio Development Services Agency to terminate the Job Creation and Retention Tax Credit agreements with General Motors. As as result, GM will be required to invest $12 million in the Mahoning Valley by the end of 2022, and refund $28 million in tax credits.
“GM has been a major employer in the state of Ohio for decades, investing in both the economy and our workforce. 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 investment by GM who has committed to investing $12 million in the local community for workforce, education, and infrastructure needs,” said Governor Mike DeWine in a statement. “GM has also committed to returning $28 million to the state for the job creation and retention credits they were awarded. GM remains involved in auto production in Lordstown to produce batteries for electric vehicles which is also good news for the future of the automotive industry.”
In 2008, General Motors entered into Job Creation and Retention Tax Credit agreements which resulted in the issuance of $60.3 million in tax credits.
GM was approved for a Job Retention Tax Credit in exchange for a commitment to retain 3,700 employees in Lordstown. The company did not maintain its commitment to retain the jobs through 2028. GM also received a Job Creation Tax Credit to create 200 new jobs at the Lordstown facility by 2010. The company exceeded its commitment by creating more than 800 jobs but did not maintain operations at the facility through 2037 as required by the agreement.
The GM Lordstown plant closed in March of 2019. The site is now the home of Lordstown Motors, which is producing what is believed to be the world's first all-electric pickup truck, the Lordstown Endurance. The company recently announced that it has received 40,000 preorders for the vehicle.
“Ohio has a long and proud history with General Motors,” said Lt. Governor Jon Husted added in the release. “When I spoke with GM on Friday to confirm their commitment to Ohio, I emphasized our desire for Ohio to be the place where they invest in their future and that we would be a reliable partner in providing the workforce and business environment they will need to compete and succeed.”
General Motors has other state incentives for its operations in Toledo and Defiance. The state says GM is currently compliant with those agreements. Following the decision by the Ohio Tax Credit Authority, the issue will now be turned over to the Ohio Department of Taxation per the Ohio Revised Code.
