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COLUMBUS, Ohio – The Ohio House passed a bipartisan bill that would give Lordstown Motors a four-year sales tax exemption on engines, transmissions, batteries, brakes and other production-specific components of electric vehicles.
Bill 292 would provide the tax exemption to all companies involved in the production of electric vehicle products, including rechargeable motor vehicles and their charging stations, as well as vehicles powered by battery, hydrogen, or gas. alternative powertrain technology. The exemption would expire on December 31, 2026.
An analysis by legislative staff, however, did not provide an estimate of lost revenue for state and local governments and the Public Library Fund, as it stated that a significant number of tangible assets exempted in the bill may already be exempted under applicable law. .
“The extent to which the bill may extend existing manufacturing exemptions is unclear, so the bill may result in tax losses, although any decrease in sales tax revenue may be small.” , indicates the analysis.
Lordstown Motors Corp. is Ohio’s only electric vehicle maker, although it has yet to begin production on a commercial scale.
The company was besieged by financial problems and informed regulators in June that it did not have the money to start production. The company’s CEO and CFO resigned after questions about how many pre-orders she had on her truck, the Endurance. One wonders if the company, billed as a potential savior of the Youngstown area, will have enough money to stay in business.
HB 292 would also create a commission to take an inventory of existing automotive product facilities and production capacity, and study the number of skilled and unskilled workers, as well as vocational training opportunities in the sector.
The bill, sponsored by Representatives Lisa Sobecki, a Democrat from Toledo, and Al Cutrona, a Republican from Mahoning County, is headed to the Ohio Senate for consideration.
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