Ohio Orders GM to Return $28 Million for Lordstown Shutdown

Ohio’s Tax Credit Authority is ordering GM to repay $28 million in tax incentives it received to keep its Lordstown Assembly Plant open, according to the Columbus Dispatch. General Motors also agreed to invest a further $12 million in the state as part of an agreement whose terms were publicized today.

This agreement comes as a result of GM’s failure to meet the terms of an earlier deal with the state that saw the automaker receive more than $60.3 million in tax incentives. 

Signed in 2008, the tax incentives were dependent on GM keeping the Lordstown plant open until at least 2037 and retain 3,700 employees through until 2028. GM closed the plant in March 2019.

“GM has been a major employer in the state of Ohio for decades, investing in both the economy and our workforce,” said Governor Mike DeWine, in a statement. “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.”

Although GM closed its Lordstown plant, it will be opening a battery venture with LG Chem in the state. The Ohio Tax Authority has awarded the automaker an estimated $13.8 million in tax incentives to help the venture.

The Ultium plant is expected to be 2 million-square-feet large and will help power GM’s range of upcoming electric vehicles. The tax authority claims that the plant will create 1,000 jobs by the end 2026 with an annual payroll of $45 million.