Foxconn’s state tax credits could max out at $312.4 million annually

Foxconn’s state tax credits would max out at $312.4 million annually from 2023 to 2026 before tailing off, according to a Department of Revenue analysis of the $3 billion special session bill now before lawmakers.

The agency’s projections show Foxconn would get more than 40 percent of the nearly $3 billion in state tax breaks over that four-year period if it builds a planned $10 billion facility in Wisconsin and hits 13,000 employees.

The Taiwanese electronics manufacturer is in line for $1.5 billion in payroll credits for $9.5 billion in payroll over 16 years plus $1.35 billion for capital expenditures projected to be $10.7 billion over five years, according to an agency analysis on the package’s fiscal impact.

DOR, along with other state agencies, prepared fiscal estimates for the special session bill that would give Foxconn up to $3 billion in incentives to build a plant in southeastern Wisconsin.

The Department of Transportation, for example, estimates repaying the $252.4 million in borrowing for I-94 north-south in the bill would require $408.3 million in general purpose revenue between 2018-19 and 2041-42.

The next hearing on the bill could be Thursday. Rep. Adam Neylon has said having his Assembly Committee on Jobs and the Economy exec Thursday on the bill is still his target but that the date is “not set in stone.” He said lawmakers are still deciding amendments to the bill, adding that he wants to make sure they can “tighten up language and have everything as specific as possible” so there aren’t any gray areas in the legislation.

See more on the agency estimates in yesterday’s PM Update:
https://www.wispolitics.com/2017/mon-pm-update-foxconn-could-get-40-percent-of-tax-credits-over-four-years/ 

SHARE