A Georgia judge has rejected a proposed tax break for Rivian that the automaker would have received as part of a deal to build a new factory in the state. Related press Friday report.
Judge Brenda Trammell of the Morgan County Superior Court dismissed a local government’s usual request to endorse a bond agreement, reportedly ruling that the counties’ Joint Development Authority (JDA) Jasper, Morgan, Newton and Walton in charge of the project failed to prove the $5 billion plant, which Rivian has said will create 7,500 jobs, was “reasonable, reasonable and feasible,” according to the report. required by state law.
Pre-production Rivian R1T
The judge also ruled that Rivian should pay regular property taxes because of the extent of its control over the real estate it will lease from the development agency. The administration planned to maintain ownership and lease out to Rivian the 2,000-acre factory site 45 miles east of Atlanta, exempting the automaker from a projected $700 million property tax. la for 25 years, according to AP. Rivian is said to have agreed to pay $300 million in taxes during that time.
It’s part of a proposed $1.2 billion tax break and incentives that state and local governments give Rivian to build the factory, announced late last year and will begin vehicle production in 2024, with an annual production capacity of 400,000 vehicles, in addition to Rivian’s existing plant in Normal, Illinois. Rivian confirmed in May that its R2 familygeared towards affordability and efficiency, will first be built in Georgia.
Officials told local news station WSBTV Friday that they do not think the ruling will affect the project.
Rivian builds R1T’s first customer example – September 2021
While any company tends to go where the deals are, Rivian is splashing money right now. In its Q2 earnings update, the automaker reported that it ended the quarter with $15.4 billion in cash and equivalents.
It should also be noted that Rivian can’t sell electric trucks it plans to do it in Georgia without an overhaul of the franchise law — and an effort to improve the franchise law in the state stalled last spring.
That makes Rivian welcome like Tesla in Texas—As automakers still have to sell their cars in the state through alternatives, even though they are currently building them in the state capital Austin.