Home / Business / State Says Foxconn Cannot Receive Billions In Tax Credits Until New Contract Is Drafted | Economic news

State Says Foxconn Cannot Receive Billions In Tax Credits Until New Contract Is Drafted | Economic news



Former Republican Governor Scott Walker signed the contract in 2017 and Hughes was appointed by Democratic Governor Tony Evers.

In a statement on Monday, Foxconn said company officials “came to the table with WEDC officials in good faith to discuss new terms of the deal that have consequential impact on Racine County and the village of Mount Pleasant. third party partner in this development project “.

“The WEDC’s determination of ineligibility during the ongoing discussion is a disappointment and a surprise that threatens the good faith negotiations,”

; Foxconn said in a statement.

The company reported in the summer that it created enough jobs in Southeast Wisconsin last year to receive state funds – despite being told nearly a year ago that the $ 3 billion in tax subsidies would not be paid until it was A new contract was drawn up to match the project. State officials say the tax subsidies agreed in the contract are tied to jobs and capital investment for specific projects, which Foxconn fails to deliver.

This year would mark the state’s first payment of refundable tax credits to Foxconn. The company lost 82 jobs below the minimum required to apply for state tax credits in 2018.

Foxconn said it created more than 800 jobs in 2019, beyond the minimum of 520 needed for state subsidies. However, under the contract the goal was to have 2,080 full-time jobs and over $ 3.3 billion in capital expenditures by the end of 2019. Foxconn’s employment report this summer it also identified more than $ 415 million in capital investments, a considerable difference from $ 280. million reported by Foxconn in April.


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