GM Lands Tax Break for $1.3 Billion EV, Battery Expansion Plans in Detroit
General Motors (GM) has shared plans to invest more than $3 billion USD into building electric vehicles (EVs) in Michigan, and a new update holds that the company will see some tax breaks for its Orion plant expansion project.
The Board of Trustees for Michigan’s Orion Township approved a 12-year tax break plan for GM on Tuesday, with the company set to begin a $1.3 billion USD expansion of the town’s production facility for electric vehicles and batteries, according to Automotive News.
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The tax breaks will reduce GM’s property taxes on the 39-year-old facility by as much as 50 percent over the 12-year period, according to Orion Township Supervisor Chris Barnett.
In a statement on Tuesday, Barnett said, “Apparently there’s going to be an announcement next week. What we did tonight just paves the way to let them know that the local unit of government is supportive of them continuing to reinvest in the plant in Orion.”
Barnett continued, “Until they put a shovel in the ground, nothing really has been done.”
GM spokesperson Daniel Flores told Automotive News a final decision has not been made yet.
“Securing all available tax incentives plays a critical role in any business case moving forward. Approving our tax incentive application is certainly a positive step forward, however, the proposed project is not approved. I’m not going to speculate on GM leadership making a final determination on the business case under development,” said Flores.
The expansion of the Orion assembly plant to be outfitted for EV battery cell production is also a part of the automaker’s long-term goal to double annual revenues under the GM brand umbrella by 2030.