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GM required to repay $28 million in tax credits after Lordstown Plant closure

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Posted at 11:57 AM, Sep 28, 2020
and last updated 2020-09-28 11:57:59-04

COLUMBUS, Ohio — General Motors will be required to repay $28 million in tax credits, in addition to providing $12 million in community investment, after the company closed its Lordstown assembly facility.

The Ohio Tax Credit Authority approved the state's Development Services Agency’s recommendation to terminate the Job Creation and Retention Tax Credit agreement it had with GM.

"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 Gov. 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.”

General Motors will be required to reinvest $12 million in the Mahoning Valley by the end of 2022. In 2008, the company entered into the Job Creation and Retention Tax Credit agreement, which resulted in $60.3 million in tax credits.

GM was approved for the tax credits in exchange for a commitment to return 3,700 employees in Lordstown through 2028, which it failed to do.

“Today’s action protects taxpayer dollars, while also allowing for continued investment in the local community,” said Lydia Mihalik, director of development and chair of the Ohio Tax Credit Authority in a statement. “Our team at Development is committed to ensuring taxpayers get a good return on their investments, supporting Ohio businesses, and strengthening communities across the state.”

According to Ohio's Development Services Agency, General Motors has other state incentives for its operations in Toledo and Defiance. The company is currently compliant with those agreements.

Find continuing coverage of News 5's "Shutdown in Lordstown" here.