Rivian Scores Its Biggest Win Yet in Georgia, but the Fight Doesn't Stop

The Supreme Court of Georgia dismissed the appeal that challenged a previous ruling that said Rivian is entitled to around $700 million in property tax breaks. The plaintiffs lost the battle before it started, and the original decision stands.

Initially, Rivian was supposed to benefit from an incentive package of around $1.5 billion. But a local judge denied the property tax breaks worth nearly half of the offer made by local authorities to lure the young brand into their area.

A panel of three intermediate appellate judges awarded Rivian those property tax breaks back. Still, the plaintiffs were unhappy and turned the matter to the court of last resort, the state's Supreme Court. Their request was denied. However, Rivian will still pay taxes on nearly all the equipment they install on-site.

The automaker does not own the land on which the factory will be built. Instead, the agreement with local authorities is governed by the characteristics of usufruct. The land is being given away to the automaker, but it cannot sell it, nor can it be inherited. It's like having rights as a tenant but without the obligation to pay rent every month.

Rivian is planning an investment of approximately $5 billion in Georgia, which would be the state's second-largest economic development. The Joint Development Authority (JDA) of Jasper, Morgan, Newton, and Walton counties says the 2,000-acre campus will encompass the electric vehicle factory and a research and development center. The Irvine-based company targets an annual production of around 400,000 vehicles.

According to the JDA, Rivian's plant will create around 7,500 "high-paying jobs," generate tax revenue that can go to local school districts, help students enter the workforce, and bring in new suppliers that will grow the local economy.

However, the seven detractors have caused quite a dent in the JDA budget. Legal fees already sum up to over $800,000.

Rivian has chosen the Stanton Springs North mega site because of its advantageous position and road and rail infrastructure access. The company's CEO, RJ Scaringe, has previously said the automaker remains committed to opening the plant in Georgia. But given the legal challenges, production is currently set to begin in 2026.

The JDA is heavily invested in Rivian beginning the construction of its new factory because over 55,000 Georgians are working on internal combustion engine-powered vehicles. As the push toward a zero-tailpipe emission auto industry continues, most workers will need new jobs.

JDA says its members have received no perks, dinners, gifts, travel allowance, or any other personal benefits from Rivian.

But environmental worries continue, and those opposing the project might try and find other reasons to stop or delay the venture until it becomes unfeasible for Rivian.

The same plaintiffs that lost are also part of other lawsuits where they blame the state for giving the startup too many advantages, according to a local news source. Moreover, one area resident is suing the EV maker and some of its contractors. They claim mud from the site is reaching streams and ponds downstream. But that's for a district judge to decide, which is not a barrier to starting the construction process.