LORDSTOWN – A state agency says General Motors must repay nearly half of a $60 million tax incentive package because of the automaker’s decision to close its assembly plant near Youngstown.
The Ohio Tax Credit Authority announced Monday that GM must refund $28 million in tax credits and invest $12 million in workforce and education needs near the former Lordstown plant.
“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 Governor Mike DeWine.
The issue is centered around an economic development agreement that called for keeping the plant operating. GM closed the factory last year.
“Its good news to hear that GM will repay the financial incentives it was offered. Thanks to Governor DeWine and his team for staying on top of this business relationship and holding them accountable,” attorney general Dave Yost said.
GM says in a statement that it still has a large manufacturing presence in Ohio.
The automaker was approved for a Job Retention Tax Credit in exchange for a commitment to retain 3,700 employees in Lordstown through 2028. GM also received a Job Creation Tax Credit to create 200 new jobs and exceeded its commitment by creating more than 800 jobs but did not keep the plant open through 2037 as required by the agreement, according to the agency.