Ohio is ordering General Motors to pay back $28 million in tax credits after it failed to meet the terms of the 30-year agreement by closing its Lordstown plant after 10 years.
GM has also been ordered to invest an additional $12 million for community development in the state, which has long struggled to regain its former manufacturing swagger.
In 2008, with gas prices soaring, GM received more than $60 million in tax credits for agreeing to keep 3,700 employees at the plant through 2028 under the Job Retention Tax Credit program and for agreeing to create 200 new jobs under the Job Creation Tax Credit program if it maintained operations through 2037 to develop the fuel-efficient Chevy Cruze.
“The company did not maintain its commitment to retain the jobs,” the Ohio Development Services Agency said in a news release.
If Ohio had ordered the repayment of all of the