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Ohio tells GM to repay tax break after it shut down plant

select-fire
It amazes me how folks think their jobs are so secure in a changing climate. 28 million is peanuts to GM. Yet all those folks that get the new jobs are entitled to them. Entitled Union brats.
September 28, 2020, 3:33 PM

LORDSTOWN, Ohio (AP) — General Motors must repay roughly half of a $60 million tax incentive package because of its broken promise to keep open its assembly plant near Youngstown, a state agency said Monday.

The Ohio Tax Credit Authority also said GM must invest $12 million in workforce and education needs near the former Lordstown plant, which the automaker closed last year.

An economic development deal from more than a decade ago gave GM millions in tax breaks in exchange for keeping the Lordstown plant operating at least through 2027. State officials told the automaker in March that the plant’s closing violated the agreement.

GM said in a statement that it has a large manufacturing presence in Ohio, noting that it is currently building a new electric battery cell factory in Lordstown next to the site of the much larger assembly plant it shut down in March 2019 after more than 50 years of production.

The battery plant will create about 1,100 jobs, while GM employed 4,500 workers at the assembly plant when it was running three shifts a few years ago.

The state tax credit authority on Monday approved a 15-year job creation tax credit for the battery plant.

The former assembly plant, meanwhile, has since been sold to a start-up company that intends to make electric pickup trucks.


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Comments

7 comments

Date Votes
  • mogley98
    Not a fan of the way states, towns and others give away the keys to get jobs but it is the way it is done
    3
  • jimdeere
    The company I worked for was given big incentives to relocate their R&D facilities to our site. When they did not employ as many people that they said they would, the state made them refund some of the money. 
    Like said, a drop in the bucket for a large corporation.
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  • Don McManus
    GM and the State of Ohio had a contract, and one has to assume the repayment is part of that original contract.

    It is newsworthy only because plant closures are important in a swing state such as Ohio during an election year.


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  • mac10
    i think this was brought up 2 years ago?
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  • BobJudy
    mogley98 said:
    Not a fan of the way states, towns and others give away the keys to get jobs but it is the way it is done
    Not a fan of it either but the community usually makes up for the initial tax loss with increased payroll and property taxes as the value of the areas properties go up from demand by the workers brought in. Big business usually causes more smaller businesses to develop and they don't get a tax break. Bob
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  • Junkballer
    mogley98 said:
    Not a fan of the way states, towns and others give away the keys to get jobs but it is the way it is done
    You need to learn how these cities/counties stick it to the taxpayers when these fancy billion dollar sport stadiums are built and leased out for a few dollars per year, the teams sell the rights to name the stadiums out to the highest bidder, not to mention the income from advertisers, vendors, parking, etc. etc. . Everyone along the line that's involved gets their palm greased except for the taxpayers.  Want to get filthy rich ?.......buy stock in a professional sports team, they never lose   :)
    3
  • SoreShoulder
    That's why the inner city is not rushing to support Trump.  

    Even though he would protect them from illegals, they hope Biden will continue the government dole.
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