Details of new Foxconn, Wisconsin tax credit and jobs deal
MOUNT PLEASANT, Wis. - A new deal is now in place for one of the world's largest technology companies. Wisconsin's economic development leader detailed the new Foxconn contract Wednesday, April 21.
Foxconn's original plans for thousands of jobs in Mount Pleasant and, in turn, billions of dollars is tax breaks never materialized.
Work continues at the Mount Pleasant campus but moving forward, the contract for state subsidies is drastically different.
"We are endeavoring to treat Foxconn the same way we treat our other companies that we have partnered with on incentive agreements," said Missy Hughes, secretary and CEO of Wisconsin Economic Development Corporation (WEDC).
Hughes calls the new contract "right-sized" to the project already underway.
The original 15-year contract offered a maximum of $2.85 billion in state tax credits, contingent on 13,000 jobs, $10 billion of investments and varying levels of credit recovery if defaulted.
The new six-year contract now offers $80 million for more than 1,400 jobs, $672 million of investments and 100% credit recovery if defaulted.
The previous contract was based on making flat-screen panels, which never materialized. Now, with no production requirements, Foxconn has signaled that it intends to pursue electric vehicles, digital health, artificial intelligence robotics, semiconductors and 5G production.
In a statement, Foxconn said: "This type of attention will make our Park, the region, and the state of Wisconsin a new hub for next-gen technological product design, jobs, investment, and smart manufacturing."
Democratic Gov. Tony Evers, a critic of the original contract put together by former Republican Gov. Scott Walker, said in a statement the new deal is: "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."
Wisconsin Assembly Speaker Robin Vos said to Wisconsin Eye he is happy.
"I am happy that Wisconsin and Foxconn were able to come to an updated agreement and glad the company continues to grow in Mount Pleasant," said Vos (R-Rochester).
Work, at least on the outside, continues in Mount Pleasant each day.
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