Commissioners in Bibb County, Ga., approved an agreement this week providing Kumho Co. nearly $64 million in property tax breaks over 20 years for its proposed plant.
In 2008, the county agreed to reduce the taxes on the plant to help make Bibb an attractive site for Kumho’s first U.S. plant. Kumho made news in July when it announced that it would resume work on the $500 million facility, which was delayed due to the recession.
As part of the tax break deal, Kumho will rent the factory site from the Macon-Bibb County Industrial Authority instead of buying it. The company agreed to make 20 years of payments in lieu of taxes.
Under the agreement, Kumho would pay around $147,000 in the plant’s first year of operation, and that would rise to around $2.5 million for its 20th year.
By renting the facility from the county, Kumho saves roughly $64 million from what it would cost for them to own the facility outright.
