Rivian’s Georgia expansion plans in jeopardy following court ruling on state incentives

Rivian has already started work on their second manufacturing facility in Georgia, announcing plans earlier this year to spend as much as $5 billion on the new facility. Part of the reason Rivian picked Georgia was because of a generous $1.5 billion incentive package.

Those plans might be in jeopardy now after a judge shot down one major part of the incentive package, the property tax incentives.

Under the terms of the deal, Rivian would have paid $300 million to local governments and school systems over a period of 25 years, instead of paying its regular property taxes. This was done under a payment in lieu of taxes agreement.

Opponents of the deal that brought the lawsuit said the deal struck between local authorities and Rivian was not one that could be afforded such incentives, and should be subject to regular property taxes.

Ocmulgee Superior Courts Chief Judge Brenda Holbert Trammel agreed with the opponents, saying in a ruling on Thursday the local development authority “failed to establish” that the credits “are sound, feasible and reasonable.” (via The Atlanta Journal-Constitution)

The Joint Development Authority (JDA) of Jasper, Morgan, Newton, and Walton counties, and the Georgia Department of Economic Development said following the ruling that they were “currently assessing all legal options” and that they will continue to “work with Rivian to move this project forward and see it through to completion.”

A lawyer representing the opposition group said the decision “reflects a careful consideration of the issues.”

Rivian declined to comment or say whether they would appeal the ruling, which you can read in its entirety below.

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