generic Rivian To Open Electric Vehicle Factory in Georgia After Winning $1.5 Billion in Tax Incentives
Electric vehicle maker Rivian will get $1.5 billion in tax incentives to build a new assembly plant in Georgia in what has been described as the biggest incentive package in the state’s history.
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The tax incentives, unveiled on May 2, will be provided by both state and local authorities. The $5 billion factory was originally announced in December 2021. It will employ about 7,500 workers and sit on nearly 2,000 acres east of Atlanta. Once the plant is up and running, it will be capable of producing up to 400,000 vehicles a year, making it the single largest economic development project in state history.
Employees at the plant will earn an average annual salary of $56,000 by the end of 2028, TechCrunch reported, with Rivian committing to maintain the jobs through 2047. The company also must make repayments to the state and joint development authority (JDA) in any year in which it is 80% below its job commitment.
The incentives package includes a combination of tax credits and other subsidies, including state and local incentives totaling $1.28 billion and another $198 million worth of site and road improvements. The state and the JDA are contributing the 1,978 acres of land for the project, which is worth an estimated $83 million. State and local governments also will spend more than $100 million on various other projects and services.
Construction is expected to begin in summer 2022, with production starting in 2024.
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The news comes during an otherwise difficult period for Rivian, which has seen its stock price sag by around two-thirds in 2022 amid supply-chain and manufacturing problems. The company has scaled back its production schedule, with plans to make only 25,000 vehicles this year, The Verge reported, citing Rivian’s latest earnings report.
Meanwhile, not everyone is happy about the tax incentives being dangled in front of Rivian, or the potential impact the factory’s development will have on local communities and ecosystems. Some opponents have held rallies to protest the project, while certain lawmakers have criticized the incentives package.
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This article originally appeared on GOBankingRates.com: Rivian To Open Electric Vehicle Factory in Georgia After Winning $1.5 Billion in Tax Incentives
