Higher investment means Hyundai could get $2.1 billion in aid to make electric cars in Georgia

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SAVANNAH, Ga. (AP) — The state of Georgia and local governments are on track to give $2.1 billion in tax breaks and other incentives to Hyundai Motor Group after the South Korean automaker and a partner announced last month that it will invest an additional $2 billion at an electric vehicle complex it's building in Georgia. Associated Press calculations show projected incentives will rise by more than $290 million from the $1.8 billion deal originally announced last year. Only $2.75 million of t

The Hyundai package has already been described as the largest subsidy package a U.S. state has ever promised a single automotive plant. That's according to Good Jobs First, a group skeptical of subsidies to private companies.Local governments have agreed to abate property taxes on the assembly plant through 2048, and to abate property taxes on the battery plant through 2049. During that time, Hyundai is projected to pay $523 million in taxes, while saving $669 million.

The company is also projected to receive an additional $10.5 million in state income tax credits, at $5,250 per job over five years, because of the increase in jobs. That would bring Hyundai's state income tax savings to $223 million. If Hyundai didn't owe that much state corporate income tax, Georgia would instead give the company personal income taxes collected from Hyundai workers.

Parts of the deal that didn't change including state and local governments spending of more than $112 million to buy and prepare 2,913 acres for the plant and spending $175 million on water and sewer facilities. The state will spend $210 million on road construction and improvements, and more than $153 million to recruit and train workers.

 

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