During the news conference Thursday, Jan 14, Lt. Gov. John Husted announced how the settlement money the Ohio Tax Credit Authority would distribute funding from the General Motors Co. tax credit agreement. 

The Ohio Development Services Agency and General Motors reached an agreement on the company's $12 million community investment in the Mahoning Valley. The community investments are required as part of the settlement for GM's repayment of its Job Creation and Retention Tax Credit incentives. In 2008, GM entered into Job Creation and Retention Tax Credit agreements, which resulted in $60.3 million in tax credits.

Also, GM will repay $28 million in tax credits. The state of Ohio required that GM refund the tax credits and make these investments following the company's decision to close its Lordstown assembly facility.

GM was supposed to maintain 3,700 jobs through 2028. While the company exceeded its commitment by creating more than jobs at the Lordstown facility, but it did not maintain operations at the facility through 2037 as required by the agreement, leading to the state seeking a refund of the tax credits.

The Ohio Tax Credit Authority came to an agreement with GM in the fall, mandating the company invest $12 million in Northeast Ohio — and to refund $28 million in tax credits for not fulfilling its agreement to live up to the terms of those incentives.

According To Lt. Gov. Jon Husted said the $12 million funding from GM would go to the following in the Valley:

  • $5 million to Youngstown State University for workforce development in partnership with Eastern Gateway Community College, and funding for the YSU Energy Storage Innovation and Training Center.
  • $3 million to village of Lordstown for design and construction of a new water tower
  • $2.5 million to Eastgate Regional Council of Governments will pay for local infrastructure improvements, and the Mahoning Valley
  • $1.5 million to Mahoning Valley Manufacturers Coalition for support community workforce development.

GM closed its Lordstown complex in March 2019, eliminating more than 4,000 jobs that the plant and eliminating the Chevrolet Cruze from the product line. 

GM is investing $2.3 billion with  LG Chem to build a battery-cell manufacturing plant in Lordstown near its former plant. The battery-cell plant is expected to be complete by late 2021. 

"The partnerships with Youngstown State and the Mahoning Valley Manufacturers Coalition will help develop the workforce for the electric vehicle and battery markets," said Lt. Governor Jon Husted. "The future of energy technology is being developed right here in Ohio, and our ongoing relationship with General Motors will accelerate this innovation while providing jobs in the Mahoning Valley."

"These projects were identified locally, will leverage additional outside funding, and have a measurable impact on the community," said Lydia Mihalik, Director of the Ohio Development Services Agency. "The investments will help attract new companies to the region and create an environment for business growth and success in the Mahoning Valley."

Youngstown State University and Eastern Gateway Community College will focus on talent recruitment, training, and retention. The partnership will help provide a skilled workforce to meet companies' needs in the Mahoning Valley, including Ultium Cells, Lordstown Motors, and TJX, among others. The funding will also support the creation of the YSU Energy Storage Innovation and Training Center.

General Motors will be required to complete the $12 million investment in the Mahoning Valley by the end of 2022, along with refunding $28 million in tax credits.