Mon. 11:24 a.m.: GM must repay $28M for breaking tax incentive
LORDSTOWN — General Motors is required to repay $28 million to the state and invest $12 million in education and training, community programs and infrastructure for breaking a tax incentive agreement the automaker had with Ohio for its former assembly plant in Lordstown.
The Ohio Tax Credit Authority this morning approved a forbearance agreement with GM “after considering the effect of market conditions on the grantees project and the grantees other operations in Ohio,” said John Werkman with Ohio Development Services.
General Motors was awarded the tax credits in 2009 — $14.2 million for job creation tax credits and $46.1 million for job retention that were used to upgrade and retool the facility to support production of the second-generation Chevrolet Cruze.
In exchange for the 15-year, 75 percent credits, GM agreed to keep the plant open for at least the next 30 years from then, but closed it 10 years into the agreement and sold it to electric truck startup Lordstown Motors Corp.
The $12 million investment shall be comprised of scholarship and / or job training support at Youngstown State University or at other higher education institutions in Ohio, community program and / or educational outreach in Lordstown or the Mahoning Valley and / or infrastructure help in Lordstown or the Mahoning Valley.