COLUMBUS (WKBN) – The state of Ohio determined General Motors will have to pay back millions in tax credits after closing the Lordstown plant.
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.
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.