Initially, Rivian’s factory plans included a $1.5 billion renovation of the EV plant in Georgia. The total cost of the plant is $5 billion, making it the company’s third launch. The incentive packages provide some help to the starters in situations. However, a judge’s ruling on incentives changes things. A third shift in spending means more changes for the company.
Image credits: Reuters
One major component of the stimulus package was a property tax incentive. Had the property tax incentives remained in place, Rivian would have had to pay just $300 million in local and school taxes over 25 years, the publication said. Now, he may have to pay a lot more. Opponents of the original incentive package sued Rivia to pay its fair share. Ocmulgee Superior Court Chief Judge Brenda Holbert Trammell sided with the property tax incentives, ruling that Rivian did not find the credits “sound, feasible and reasonable.”
Also, the Georgia Department of Economic Development reiterated their commitment to work with the local county joint authority on the plans for Rivian. The teams are looking at all legal angles moving forward, and added, “We will work with Rivian to move this project forward and see it through to completion.”
Georgia plant
Morgan County Superior Court Judge Brenda Trammell on Thursday threw out a deal between the local development authority and the Amazon.com Inc-backed EV company because the proposal was not implemented and failed to prove it would promote the safety of local communities. Rivian announced plans to build the Georgia plant in December and said at the time that it would be operational in 2024. The company has a plant in Normal, Illinois. The Georgia plant, which has the capacity to produce 400,000 vehicles a year and is expected to employ more than 7,500 workers, will receive a $1.5 billion stimulus from the state, the Georgia Department of Economic Development said in May.
The development comes as Rivian faces hurdles to access tax incentives for many of its current models under the new Energy and Climate Act passed by the US Senate. The company said in August that it expected a wider loss this year but maintained its production plan of 25,000 vehicles. It is not clear if Rivian is going to change his plans.
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