State Clawing Back $28M in Tax Credits From General Motors
The state of Ohio is calling on General Motors to refund the state tens of millions of dollars in tax credits in reaction to GM closing the Lordstown auto plant last year.
The Ohio Tax Credit Authority says General Motors is out of compliance with its tax incentive agreement after closing the Lordstown plant. The deal was reached in 2008 and has steered $60 million to GM.
The state has reached a new agreement with GM to claw back $28 million and requiring GM to invest another $12 million into the Mahoning Valley.
Dan Flores, GM corporate spokesperson, says market conditions led to closing the Lordstown plant.
“We did have to make the difficult decision that we were unfortunately closing the assembly plant, fully understand that we secured incentives as part of investments related to the Chevrolet Cruze and we didn’t live up to our full obligation,” says Flores.
Flores notes other investments GM continues to make in Ohio such as a new battery cell plant in Lordstown, and $71 million in new investments at its plants in Toledo and Defiance.
“Ohio’s been a very important state of us. We have about 3,800 employees. In the agreement that we reached with the state of Ohio on the incentives, as well as the commitments related to the investment announcement made this afternoon, show that Ohio’s going to continue to be an important state for us.”
The $12 million in investments for Lordstown is based around three areas; education, community programs, and infrastructure. Flores says these will act as community grants which will be distributed by the end of 2022.
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