Rivian has lost some tax breaks associated with a $5 billion vehicle plant the company plans to build near Atlanta, Georgia.
The key issue deals with property taxes connected with the land on which the plant would be built. Under the current deal, Rivian would lease the land from the state, and as a result avoid paying regular property taxes.
Rivian would save $700 million in property taxes over 25 years, though the company would be required to make bond payments totaling $300 million in lieu of those taxes during the period. The saving was part of an overall package of breaks and incentives worth $1.2 billion offered by Georgia.
However, Morgan County Superior Court Judge Brenda Trammell ruled last week that Rivian, in accordance with state laws, should be required to pay the property taxes due to the level of control it will have over the land, the Atlanta Journal-Constitution reported.
Trammell also rejected the state’s request to validate an associated bond agreement, due to the request not having sufficient proof that it is “sound, reasonable and feasible.”
The Georgia Department of Economic Development and a local four-county joint development authority are considering appealing the decision, according to the Atlanta Journal-Constitution.
The plant, which would be Rivian’s second after the company’s existing plant in Normal, Illinois, was first announced last December. Construction was due to start this year, with Rivian originally aiming for the first vehicles to be rolling off the production line at the site in 2024. The planned capacity was said to be 400,000 vehicles, or double the capacity of Rivian’s existing plant.
Keyword: Rivian loses Georgia tax breaks for second plant