This tiny Georgia town worries cut in federal incentives will burst its bubble

In its current form, the bill passed on May 22 would eliminate the $7,500 tax credit for new EVs and production tax credits for manufacturers. If the rollback of tax credits results in consumers buying fewer EVs, SK Battery likely would scale back its production and workforce.

Credit: SK Battery America

Credit: SK Battery America

A spokesperson for SK Battery declined to comment, but Arthur van Benthem, an associate professor of business economics and public policy at the University of Pennsylvania’s Wharton School, said those tax credits are key drivers of demand.

“Consumers benefit enormously from the EV tax credit,” he said, citing research that finds EV sales would decline by 27% if the $7,500 credit is removed.

Credit: HYOSUB SHIN / AJC

Credit: HYOSUB SHIN / AJC

Some residents of Commerce are worried that passage of the reconciliation bill could trigger layoffs across the city.

“Commerce was a ghost town before SK Battery, and now it’s booming like crazy‚” barista Charis McConnell said while making a latte at a local coffee shop.

State Sen. Frank Ginn, R-Danielsville, whose district includes parts of Jackson County, remains optimistic that SK Battery will adapt.

“The demand for electric cars and electric batteries continues in a lot of different marketplaces,” he said. “If there’s less vehicle sales, they may shift to other production battery uses.”

Beyond a loss of business, a slowdown at the plants could impact home prices.

The median home price in Jackson County in April 2025 was $418,000, a 62% increase compared to five years ago, according to real estate company Redfin.

Credit: HYOSUB SHIN / AJC

Credit: HYOSUB SHIN / AJC

While skeptical that SK Battery alone was behind the rise in home prices in Commerce, Casey Wichman, an associate professor of applied microeconomics at Georgia Tech, said housing prices would be impacted by cuts to clean energy incentives.

“Any federal policies that reduce local spending, whether it is clean energy tax credits or inflationary tariffs that raise costs to U.S. consumers, are likely to slow economic growth, which will be picked up in housing prices,” he said.

To incentivize SK Battery to build plants in Commerce, the state and Jackson County provided $300 million in grants, tax breaks and free land.

The plants have brought jobs and an increased standard of living for the rural county.

Angel Abounader, service manager at the Commerce Public Library, said that SK Battery donated $30,000 for a Korean section at the local library.

“We still have money left over from that donation, and that was huge to help educate the community about Korean culture but also to have books for Koreans who might move to the community of authors and illustrators that they’re familiar with,” she said.

Credit: HYOSUB SHIN / AJC

Credit: HYOSUB SHIN / AJC

Robin Lee helped open Mr. K BBQ, a Korean barbecue restaurant, in 2023 after SK Battery began production.

“A lot of people from Korea have come since the plants opened. They eat here a lot,” said Lee, who lives 45 minutes away in Suwanee but travels to work each day to run the business with her mother.

Credit: HYOSUB SHIN / AJC

Credit: HYOSUB SHIN / AJC

Lee got a window into the impact of plant reductions in 2023 when SK Battery furloughed workers because of decreasing demand for EVs.

“Business was slow for us when the layoffs happened,” she said. “Since then, we have expanded our advertising to get more Americans to come. They love Korean barbecue.”