Taiwanese contract electronics manufacturer Foxconn is scaling back its planned investment in Wisconsin.
Taiwanese contract electronics manufacturer Foxconn is scaling back its planned investment in Wisconsin. In a new agreement negotiated under Gov. Tony Evers between the Wisconsin Economic Development (WEDC) and Foxconn, the company 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 right-sized contract includes comparable rates and incentives to those offered to other companies by WEDC.
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.
WEDC Secretary and CEO Missy Hughes noted that the amended contract will boost Wisconsin’s economic recovery as the state works to respond and bounce back from the coronavirus pandemic.
“The agreement provides the opportunity to be responsive to the marketplace that a modern, forward-looking company like Foxconn needs to pursue innovation. At the same time, by right-sizing the contract, our state is in a position where we can ensure that all businesses – everywhere – have the resources they need to grow and prosper,” Hughes said.
In a statement, Gov. Evers said the new agreement “treats Foxconn like any other business and will save taxpayers $2.77 billion, protect the hundreds of millions of dollars in infrastructure investments the state and local communities have already made, and ensure there’s accountability for creating the jobs promised.”
The new agreement, which is effective upon signing by WEDC and Foxconn officials, provides $80 million in performance-based incentives if Foxconn hires 1,454 qualified workers earning an average wage of $53,875, and invests $672 million by 2026; allows Foxconn 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; adds Foxconn Industrial Internet USA Inc. (Fii USA) as an affiliate eligible for tax incentives; and reduces the length of the two sides’ commitment from 15 years to six.
The comparison of the original and amended contract is below: