Deal for $5.5B Hyundai plant in Georgia nears final approval

Jul 19, 2022, 2:27 PM | Updated: 4:12 pm
FILE - The Hyundai company logo hangs over a long row of cars at a car dealership in Centennial, Co...

FILE - The Hyundai company logo hangs over a long row of cars at a car dealership in Centennial, Colo., Sunday, Dec. 20, 2020. Georgia officials are close to finalizing a deal with the automaker to build a $5.5 billion electric car plant near Savannah, Ga. An economic development agency representing four Savannah-area counties approved its portions of the agreement Tuesday, July 19, 2022, including an economic incentives package. (AP Photo/David Zalubowski, File)

(AP Photo/David Zalubowski, File)

SAVANNAH, Ga. (AP) — The local economic development agency that worked with Georgia officials in recruiting Hyundai Motor Group to build a $5.5 billion electric car plant near Savannah approved its portions of the deal Tuesday, though details of tax breaks and other incentives have yet to be disclosed.

The joint development authority that voted to enter the deal represents four southeast Georgia counties that will give up hundreds of millions in taxes in exchange for at least 8,100 jobs Hyundai has promised to create. Officials said they won’t release details of the incentives package until the state and Hyundai finalize the deal, possibly later this week.

“I think it’s very fair, I think it’s very equitable,” Trip Tollison, who heads the Savannah Economic Development Authority, said of the deal. “I think it represents what the region needs to make the company — the folks moving here with all the jobs — successful.”

Republican Gov. Bryan Kemp called the project the largest economic development deal in Georgia’s history when it was announced two months ago in Bryan County, where Hyundai plans to build the company’s first U.S. plant dedicated to electric vehicles. The automaker plans to start construction next year and begin producing up to 300,000 vehicles per year in 2025.

State officials have said that the incentive package would be similar to the $1.5 billion in tax breaks and spending given to Rivian Automotive, which is planning an electric vehicle factory east of Atlanta.

The top item in that Rivian package was $700 million in property taxes waived by local governments over 25 years. The company agreed to make $300 million in payments in lieu of taxes starting in 2023. The Savannah Harbor-Interstate 16 Corridor Joint Development Authority voted Tuesday on how money from Hyundai’s payments in lieu of taxes would be shared, but did not release how much projected tax revenues are being waived or how much Hyundai will pay.

Tollison, who works with the joint development authority, said Bryan, Bulloch, Chatham and Effingham counties must still approve the revenue-sharing agreement. He said Bryan County would get the majority of the money, but that other counties would share in revenue because they are putting up money to buy land and build roads, and also will see growth from the deal.

One major benefit for Hyundai will be an income tax credit worth an estimated $213 million. That’s based on the credit of $5,250 per job over five years that Georgia offers for its largest development projects. If Hyundai didn’t owe that much state corporate income tax, Georgia would instead give the company personal income taxes collected from Hyundai workers.

Hyundai is also likely to save hundreds of millions of dollars from sales tax exemptions on machinery and construction materials.

State and local officials already spent $61 million to buy 2,200 acres (890 hectares) for the project site in Bryan County. The partners later bought another 700 acres (283 hectares) but haven’t disclosed how much the additional land cost. The authority approved a $65.7 million contract Tuesday to clear the land. It also approved a contract to design an entrance road.

Kia, another subsidiary of the Hyundai Motor Group, got more than $450 million in incentives for its plant in West Point, southwest of Atlanta. Georgia has promised SK Innovation $300 million in incentives for a $2.6 billion, 2,600-worker battery plant that the Korean company is building northeast of Atlanta.

Amy reported from Atlanta.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Mourners carry the body of a victim of a mosque bombing in Kabul, Afghanistan, Thursday, Aug. 18. 2...
Associated Press

Police: Death toll in Afghan capital mosque bombing now 21

KABUL, Afghanistan (AP) — A bombing at a mosque in the Afghan capital of Kabul during evening prayers killed at least 21 people, including a prominent cleric, and wounded at least 33 others, eyewitnesses and police said Thursday. There was no immediate claim of responsibility for the attack Wednesday night, the latest to strike the […]
36 minutes ago
FILE - Kimi Raikkonen, of Finland, pauses during a news conference in Concord, N.C., May 20, 2011. ...
Associated Press

Kimi Raikkonen hits pause on retirement to race NASCAR

CHARLOTTE, N.C. (AP) — Kimi Raikkonen retired to Switzerland at the end of last year’s Formula One season and has blissfully spent the last eight months with his young family. Did he miss racing? “Not really, no,” the 2007 F1 champion said. Yet here he is, not even a full year into retirement, and Raikkonen […]
36 minutes ago
FILE - In this image provided by the Ukrainian Presidential Press Office, Ukrainian President Volod...
Associated Press

Zelenskyy to host Lviv talks with UN chief, Turkish leader

LVIV, Ukraine (AP) — Ukrainian President Volodymyr Zelenskyy is due to host the U.N. chief and Turkey’s leader Thursday for talks on the recent deal to resume Ukraine’s grain exports, the volatile situation at a Russian-occupied nuclear power plant and efforts to help end the nearly six-month-old war. U.N. Secretary-General António Guterres arrived Wednesday in […]
1 day ago
Taiwanese soldiers operate a Oerlikon 35mm twin cannon anti-aircraft gun at a base in Taiwan's sout...
Associated Press

US to hold trade talks with Taiwan, island drills military

HUALIEN, Taiwan (AP) — The U.S. government will hold talks with Taiwan on a wide-ranging trade treaty in a sign of support for the self-ruled island democracy China claims as its own territory. The announcement Thursday comes after Beijing held military drills that included firing missiles into the sea to intimidate Taiwan following this month’s […]
1 day ago
A currency trader watches monitors near screens showing the Korea Composite Stock Price Index (KOSP...
Associated Press

Asian stocks follow Wall St down after Fed inflation report

BEIJING (AP) — Asian stock markets followed Wall Street lower Thursday after the Federal Reserve said U.S. inflation is too high, suggesting support for more aggressive interest rate hikes. Shanghai, Tokyo, Hong Kong and Sydney declined. Oil prices edged higher. Wall Street’s benchmark S&P 500 index lost 0.7% on Wednesday after notes from the Fed’s […]
1 day ago
FILE- Los Angeles Lakers forward LeBron James (23) goes up high to dunk the ball during the first h...
Associated Press

LeBron James inks 2-year, $97.1 million deal with Lakers

LOS ANGELES (AP) — LeBron James has agreed to a two-year, $97.1 million contract extension through the 2024-25 season with the Los Angeles Lakers, his agent announced Wednesday. Klutch Sports CEO Rich Paul said the league-maximum deal makes James the highest-paid player in NBA history. His new deal includes a player option that would keep […]
1 day ago

Sponsored Articles

...
Sanderson Ford

Don’t let rising fuel prices stop you from traveling Arizona this summer

There's no better time to get out on the open road and see what the beautiful state of Arizona has to offer. But if the cost of gas is putting a cloud over your summer vacation plans, let Sanderson Ford help with their wide-range selection of electric vehicles.
...
Dr. Richard Carmona

Great news: Children under 5 can now get COVID-19 vaccine

After more than two years of battle with an invisible killer, we can now vaccinate the youngest among us against COVID-19. This is great news.
...
Carla Berg, MHS, Deputy Director, Public Health Services, Arizona Department of Health Services

Update your child’s vaccines before kindergarten

So, your little one starts kindergarten soon. How exciting! You still have a few months before the school year starts, so now’s the time to make sure students-to-be have the vaccines needed to stay safe as they head into a new chapter of life.
Deal for $5.5B Hyundai plant in Georgia nears final approval