Company must hire 1,454 qualified workers to get tax credits
A new agreement negotiated under Gov. Tony Evers between the Wisconsin Economic Development Corp. (WEDC) and Foxconn will save Wisconsin taxpayers a total of $2.77 billion, according to the governor’s office.
Under a contract amendment approved Tuesday by the WEDC Board of Directors, Foxconn is eligible to receive up to $80 million total in performance-based tax credits over six years if it meets employment and capital investment targets.
The original contract negotiated in 2017 authorized $2.85 billion in performance-based tax credits to build a Generation 10.5 plant, not including new tax incentives from local governments and road and highway investments by the state and local governments, which brought total taxpayer-funded subsidies to more than $4 billion.
The deal also allows Foxconn, like other manufacturers in the state, to earn tax incentives without specific requirements as to what it produces or manufactures, as long as it meets the hiring and capital investment targets and strengthens taxpayer protections by allowing the state to recover 100% of incentives paid each year in the event of a default.
Foxconn issued a statement Tuesday saying, “Hon Hai Technology Group (Foxconn) thanks the WEDC Board of Directors for endorsing an amendment to the 2017 WEDC Agreement that will give Foxconn the flexibility to pursue business opportunities in response to changing global market conditions.”