![]() ![]() ![]() Hyundai could also qualify for tax exemptions for high-tech machinery of more than $280 million and an unspecified amount for research and development costs. Other generous perks in the deal are built into Georgia law, including about $212.6 million from a recently-altered “ mega tax credit” program that offers incentives at $5,250 per new job created annually for five years for companies readying major investments in Georgia. “I am as assured of that as I can be, or I wouldn’t have done the deal. “It is going to be an economic driver, not just for this community, but for the region,” said Carter Infinger, chairman of both the Bryan County Board of Commissioners and the area’s joint development authority. The state said through 2048, Hyundai will pay about $357 million in tax payments to local communities, much more than the land’s current tax bill, but a substantial savings over the life of the deal. In exchange for typical property taxes, Hyundai will pay fixed tax payments under the lease agreement, starting at about $12.6 million in 2026 and rising in later years through 2048. Hyundai will receive free land valued at about $109 million, which it will control under the terms of a lease. The offer letter pegs it at $502 million based on a $5.9 billion investment, but a state official said the value will be $472 million based on a $5.5 billion commitment from Hyundai. The biggest single piece of the package involves a local tax abatement for the nearly 3,000-acre factory site, according to a state offer letter. ![]() Hyundai separately committed to having its suppliers invest $1 billion in Georgia manufacturing operations. Hyundai has committed to hiring at least 8,100 by the end of 2031, and the average Hyundai wage is listed as more than $58,000. Hyundai’s incentive deal is similar to the one struck with Rivian and made public in May.Īmong the elements of the agreement unveiled Friday is Hyundai’s commitment to spend at least $5.5 billion on two plants, one making electric vehicles, the other batteries with a partner. Hyundai is the parent of the Hyundai, Kia and Genesis brands and the company has bold plans to transform its fleet in the coming years. “And that’s the problem with these deals… and we’re worried that a lot of states are overspending right now at a time when a lot of people think there’s going to be a recession and tax revenues will go back down.” Tax credits, free land part of pitch “Many states, especially Georgia, are really opening up their wallets wide (to EV companies) for many years,” said Greg LeRoy, executive director of left-leaning incentives watchdog Good Jobs First. Tennessee, Texas, North Carolina, Michigan and Kentucky are among the states that have announced major EV or battery factories in recent years, from names including Tesla, Ford and General Motors. States have launched unprecedented bidding wars to land EV and battery plants. The future Hyundai factory’s payroll “will reach $4.7 billion over 10 years,” he said. Wilson said the project, known as the Hyundai Motor Group Metaplant America, and its battery joint venture operations, will attract thousands of additional jobs from suppliers that will locate nearby. Morton for The Atlanta Journal Constitution
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