COLUMBUS, Ohio (WOIO) - General Motors (GM) is required to return $28 million in tax credits to the state and invest $12 million into the Mahoning Valley as a result of its decision to close the Lordstown assembly plant.
This comes as the Ohio Tax Credit Authority today approved a recommendation by the Ohio Development Services Agency that GM repay the money.
According to a press release, GM entered into Job Creation and Retention Tax Credit agreements which resulted in the company getting $60.3 million in tax credits.
Now, GM will have to return $28 million to the state of Ohio and invest $12 million into the Mahoning Valley by 2022.
“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," Gov. Mike DeWine said.
GM was awarded Job Retention Tax Credits in 2009 in exchange for a commitment to retain 3,700 employees in Lordstown through 2028 and create 200 new jobs by 2010.
The company created more than 800 new jobs but did not maintain operations at the plant through 2037 as the agreement required.
GM sold the Lordstown plant to Lordstown Motors Corp. in 2019.
Currently, GM is building a new battery cell manufacturing plant in Lordstown.
The company said the plant, which will produce batteries for electric cars, will create 1,100 new jobs.