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Foxconn deal with Wisconsin lowers tax breaks to $80 million

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Posted at 3:50 PM, Apr 20, 2021
and last updated 2021-04-20 23:33:20-04

MADISON, Wis. (AP/TMJ4) — Foxconn Technology Group will qualify for up to $80 million in state tax incentives under a new contract that downsizes the scale of credits as the size of the envisioned manufacturing facility has also shrunk.

Gov. Tony Evers on Tuesday announced details of the new contract. Under the original deal, signed in 2017, Foxconn would have qualified for $2.85 billion in state tax credits if it invested $10 billion and created 13,000 jobs.

Under the new deal, Foxconn will qualify for $80 million if it employs 1,454 people and invests $676 million by 2026.

“When I ran to be governor, I made a promise to work with Foxconn to cut a better deal for our state—the last deal didn’t work for Wisconsin, and that doesn’t work for me,” said Gov. Evers in a statement Tuesday. “Today I’m delivering on that promise with an agreement that 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.”

Foxconn issued the following statement:

"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. With this flexibility also comes the predictability and stability to know that Foxconn’s material contributions in Wisconsin will be recognized by the State as benchmarks are achieved year-over-year."

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