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Ohio Boosts Honda EV Plant Expansion With $71.3M Tax Credit

The Ohio Tax Credit Authority agreed this week to a new tax credit that has an estimated value of $71.3 million, and it is aimed at boosting a new Honda electric vehicle battery plant located near Dayton.

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(TNS) — The Ohio Tax Credit Authority agreed Monday to a tax credit with an estimated value of $71.3 million to boost a new Honda electric vehicle (EV) battery plant near Dayton.

The Tax Credit Authority approved a 1.871%, 30-year job creation tax credit to fuel plans that state leaders believe will create more than 2,500 new Honda jobs.

Honda's planned EV battery plant, to be built with LG Energy Solution, will employ an expected 2,200 workers, Honda and the state said in announcements earlier this month. Existing Honda plants in Marysville, East Liberty and Anna are to be retooled for EV production at those sites, creating an additional 300 new jobs.

The state said Monday it expects Honda to create 2,527 full-time positions, generating $117.6 million in new annual payroll and retaining $578.7 million in existing payroll.

Honda's credit means for that 30 years, Honda can claim a 1.871% credit on new Ohio payroll related to the project location. That has an estimated value of more than $71 million, according to the state.

Honda's EV battery plant will be located near U.S. 35 and Interstate 71 in Jefferson Twp., Fayette County.

Honda leaders have said production of internal combustion engine automobiles is expected to continue for some time.

Enable Injections also gets credit

The tax credit authority also approved incentives for Enable Injections Inc., a business planning to create 257 full-time positions, generating $19.8 million in new annual payroll and retaining $20.3 million in existing payroll, as a result of the company's expected expansion in three communities — Franklin in Warren County, West Chester Twp. in Butler County and Evendale in Hamilton County.

Enable Injection's credit has an estimated value of $3.25 million, the state said.

Enable Injections is a Cincinnati company developing and manufacturing investigational wearable drug delivery systems. As the company describes its work, Enable Injections' "enFuse" product is a drug delivery technology designed to subcutaneously deliver medicine to treat diseases.

That product is based on research conducted by Cincinnati Children's Hospital Medical Center, the state said. The authority approved a 2.009%, 10-year job creation tax credit for the project.

In total Monday, the Tax Credit Authority approved credits for projects that state officials believe will create 3,104 new jobs while retaining 8,216 jobs statewide.

Companies receiving the credits are required to annually report jobs, payroll, and investment to the Ohio Department of Development. They report this information for the term of the agreement, plus three additional years, the state says.

More electric vehicle news

Also Monday, the administration of Gov. Mike DeWine announced a $100 million investment to "support the implementation of electric vehicle charging infrastructure throughout the state over the next five years."

DriveOhio, a division of the Ohio Department of Transportation, has started accepting proposals from companies to install and operate EV charging stations in Ohio.

"Having the capability to support more electric vehicle charging stations is something we've been working on for years," DeWine said. "The development of a statewide network of charging infrastructure will enable EV travel across the state, support private sector investment, and spur even more economic development across the state."

ODOT will accept proposal requests until Dec. 21, 2022. Information and full guidelines can be found at drive.ohio.gov/nevi.

© 2022 the Journal-News (Hamilton, Ohio). Distributed by Tribune Content Agency, LLC.
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