Proposed Foxconn incentive package includes up to $3 billion in tax credits

A senior Trump administration official says Foxconn’s $10 billion manufacturing facility in Wisconsin will be the “first of many” U.S. investments by the Taiwanese tech company.

Foxconn would also be eligible for tax credits totaling up to $3 billion over 15 years for its planned $10 billion southeastern Wisconsin facility that officials say could eventually employ as many as 13,000 people, according to a fact sheet the Walker administration shared with lawmakers.

Gov. Scott Walker and other Wisconsin leaders are at the White House announcing the LCD panel manufacturing facility will be in southeastern Wisconsin.

 

 

The Trump administration official told reporters today that Foxconn would create 3,000 “excellent-wage jobs” in the facility and could eventually hire 13,000 people in Wisconsin. The plant will be the “first of a series of facilities” that Foxconn will build in the U.S.

“An investment of this magnitude, job creation of this size, landing one of the largest and most successful companies in the world to make a massive investment in your state is an incredibly positive thing,” the official told reporters today, calling the deal a milestone in Trump’s efforts to boost the country’s manufacturing sector.

Wisconsin, which competed with several other states in landing the facility, is offering a series of credits to the company, which include: up to $1.5 billion in state income tax credits tied to job creation, up to $1.35 billion in state income tax credits for capital investment and a sales and use tax exemption of up to $150 million, according to the fact sheet from the guv. Walker’s office says a special session of the Legislature would be needed to approve the incentive package.

Asked whether federal incentives would be included, the Trump administration official said the feds won’t create a new program for Foxconn, though the company “may fit into existing programs.”

The official said Trump met with Foxconn Chairman Terry Gou and the administration facilitated conversations between his company and the competing states, crediting Walker for the “great leadership role” he played.

The deal was an “incredible team effort” between the administration, including Jared Kushner and his White House Office of American Innovation, Walker, House Speaker Paul Ryan and White House Chief of Staff Reince Priebus, who hails from Kenosha.

Senate Minority Leader Jennifer Shilling, D-La Crosse, urged caution ahead of today’s announcement, saying she wants to ensure “any state-subsidized private sector jobs offer a living wage and safe working conditions” and called on the Walker administration to be transparent about any negotiations.

Assembly Minority Leader Peter Barca, meanwhile, said he’s met with Foxconn officials and was told they’re family-supporting jobs but said he’s “eager to see the exact language of the deal.”

Barca also said that Republicans should “not rush this through” and give local officials and the public enough time to digest any package and see whether it protects state and local taxpayers.

But Barca, a Kenosha Dem who’s on the Wisconsin Economic Development Corp. board, said officials are “pretty excited about the prospects.”

“It’s an exciting potential opportunity,” Barca said. “I think it could have an enormous impact in the southeastern Wisconsin region.”

See the fact sheet:
http://www.wispolitics.com/wp-content/uploads/2017/07/170726Foxconn.pdf

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