The Bureau announces the release of report 19-27, 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. In 2019, WEDC did not award any program tax credits because Foxconn did not create the contractually specified minimum number of jobs in 2018. Statutes and WEDC’s contract require WEDC to award Foxconn program tax credits for the wages paid to employees for services performed in Wisconsin. We recommend WEDC modify its written procedures to explicitly require it to award program tax credits for only the wages paid to employees for services performed in Wisconsin. We also recommend WEDC comply with its contract when calculating the amount of wages that are eligible for program tax credits, not award program tax credits unless the certified public accountant hired and paid for by Foxconn uses procedures that WEDC approves in writing, and award program tax credits for only capital investments made in the zone.
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