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Ohio Claws Back $28 Million In Tax Credits From General Motors

The GM plant in Lordstown, Ohio, closed in 2019 as part of a massive company restructuring.
Tony Dejak
Associated Press
The GM plant in Lordstown, Ohio, closed in 2019 as part of a massive company restructuring.

The state of Ohio is calling on General Motors to refund the state tens of millions of dollars in tax credits in reaction to closing the Lordstown auto plant last year.

The Ohio Tax Credit Authority says GM is out of compliance with its tax incentive agreement after closing the factory in Northeast Ohio. The deal was reached in 2008 and has steered $60 million to GM.

The state has reached a new agreement with GM to claw back $28 million and requiring GM to invest another $12 million into the Mahoning Valley.

Dan Flores, GM corporate spokesperson, says market conditions led to closing the Lordstown plant.

“We did have to make the difficult decision that we were unfortunately closing the assembly plant, fully understand that we secured incentives as part of investments related to the Chevrolet Cruze and we didn’t live up to our full obligation,” Flores says.

Flores notes other investments GM continues to make in Ohio such as a new battery cell plant in Lordstown, and $71 million in new investments at its plants in Toledo and Defiance.

“Ohio’s been a very important state of us. We have about 3,800 employees. In the agreement that we reached with the state of Ohio on the incentives, as well as the commitments related to the investment announcement made this afternoon, show that Ohio’s going to continue to be an important state for us,” Flores says.

The $12 million in investments for Lordstown is based around three areas, education, community programs and infrastructure. Flores says these will act as community grants which will be distributed by the end of 2022.

Andy Chow is a general assignment state government reporter who focuses on environmental, energy, agriculture, and education-related issues. He started his journalism career as an associate producer with ABC 6/FOX 28 in Columbus before becoming a producer with WBNS 10TV.