The Bureau announces the release of report 18-18, Electronics and Information Technology Manufacturing Zone Program.
In November 2017, the Wisconsin Economic Development Corporation (WEDC) executed a $2.85 billion contract with Foxconn to create jobs and make capital investments over the 15-year period from January 2018 through December 2032. WEDC may first award tax credits to Foxconn in 2019, based on the jobs Foxconn created in 2018. Statutes and WEDC’s contract require WEDC to award Foxconn tax credits for the wages of employees who perform services in Wisconsin. WEDC established written procedures that allow it to award tax credits for certain employees who do not perform services in Wisconsin, as long as these employees are paid in the zone. In this way, these written procedures do not comply with statutes or WEDC’s contract. We recommend WEDC modify its written procedures to require it to award program tax credits only for the wages of employees who perform services in Wisconsin.
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