Georgia State Government Confirms Incentives… 400 billion more than Rivian
On the 22nd (local time), the Georgia state government decided to provide incentives worth close to 2.4 trillion won, including tax cuts, to Hyundai Motor Company, which builds electric vehicle (EV) factories.
The Georgia state government confirmed and announced an incentive plan worth $1.8 billion (2.358 trillion won) on the same day, Associated Press reported.
According to the incentive agreement, the Georgia state government will grant Hyundai Motors more than $472 million (618.3 billion won) in property tax relief for 26 years from 2023.
Hyundai Motor will also receive a tax deduction of $212 million (277.7 billion won) in return for job creation over five years.
The deductible for each job is $5,250.
In addition, the state government and local municipalities near Savannah, where the Hyundai Motor plant will be built, will purchase $86 million (112.6 billion won) for the power plant site, $200 million (262 billion won) including road construction, and $50 million for construction and machinery equipment. (65.5 billion won) is provided by self-financing.
Hyundai Motor will also be exempted from tax of $390 million (518 billion won) on factory construction machinery and construction materials.
Instead, Hyundai Motor decided to return some of the incentives to the state government if it falls short of 80% of the investment and job creation targets promised under the agreement.
In addition, instead of being exempt from property taxes, the government decided to pay $357 million (467.6 billion won) to the state in the name of profit-sharing.
Previously, Hyundai Motor Company announced in May that it would build an electric vehicle-only plant and battery plant with an annual production capacity of 300,000 units by 2025 near Savannah, Georgia, and create 8,100 jobs locally.
The deal between Hyundai Motor and the Georgia state government is the largest economic development deal in Georgia’s history, the Associated Press reported.
Hyundai Motor Company’s incentive is $300 million (regarding 400 billion won) more than the amount of support promised by the state of Georgia to Rivian, an American electric vehicle startup.
In May, the state of Georgia agreed to provide a $1.5 billion incentive to Rivian to build an electric vehicle plant.
Earlier, Kia Motors received a $450 million (580 billion won) incentive for building a plant in Georgia, and SK Innovation, which is currently building a battery plant in Georgia, was promised a $300 million (regarding 400 billion won) incentive. .
Georgia State Economic Development Commissioner Pat Wilson said in a statement that “This project solidifies our position in the leading work of the EV transition and ensures the benefits of future jobs for residents.”
The Georgia state government expects Hyundai’s new plant to pay $4.7 billion in total salaries to workers over 10 years, and create thousands of additional jobs for parts suppliers.
/yunhap news
