GM Lordstown gets tax break from state for expansion

COLUMBUS — The state approved incentives of nearly $80 million for an expansion of General Motors’ Lordstown facility.

The Ohio Tax Credit Authority gave final approval today for separate incentives for the project, expected to create 200 jobs and retain another 3,700.

The authority is a five-member independent board consisting of taxation and economic development professionals who review and approve applications for stat tax credit assistance.

A 75 percent Job Creation Tax Credit, aimed at the new positions, is expected to save the company more than $4.4 million over its 15-year term. A 75 percent Job Retention Tax Credit, that would cover the current work force, is expected to save the company some $77.7 million.

The incentives are refundable tax credits against what companies pay in corporate activity or income taxes, based on the state income taxes withheld on its new, full-time employees.

For example, a company paying $100 in state income tax withholdings for a new worker would be credited with $75 toward its other state tax obligations, based on a 75 percent credit.

The approval was among the last hurdles for the company in making a final decision on the $317 million expansion. Vehicle production would begin in 2010.

For the complete story, see Tuesday’s Vindicator and Vindy.com.