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State will provide company up to $80 million under drastically down-scaled deal. By Jeramey Jannene - Apr 20th, 2021 03:43 pm //end headline wrapper ?>Current Wisconn Valley Science and Technology Photo courtesy of the Foxconn Technology Group.
The new agreement between the Wisconsin Economic Development Corporation and Foxconn cuts the potential tax credit award from $2.85 billion to $80 million.
In exchange Foxconn’s hiring and investment targets are cut from 13,000 employees and $10 billion invested to 1,454 workers and $672 million invested. The per-job wage credit falls from 17% to 7% as part of the renegotiated deal, with a minimum salary of $53,875 per qualified job. The credits remain refundable, effectively a cash payment award to the company.
A new agreement between Foxconn Technology Group and the state announced Tuesday dramatically scales back the number of jobs the company promises to create to only 1,454 and reduces the capital investment to a fraction of what was originally promised.
In return, Foxconn stands to receive far less state cash.
The agreement allows for Foxconn to get a maximum of $80 million in tax credits compared to the previous agreement which would have granted the company $2.85 billion in state money if the company met certain hiring and capital investments.
Foxconn four years ago promised to bring 13,000 high-tech jobs to Wisconsin and create a massive Racine County facility that former Gov. Scott Walker and President Donald Trump, both Republicans, heralded as transformational for the state s economy.
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One of the buildings still under construction at the Foxconn site in Mount Pleasant on Aug. 24, 2020.
A state board Tuesday will consider a proposed settlement between Foxconn and Wisconsin Gov. Tony Evers to reduce tax breaks for Foxconn s large campus in Racine County.
Evers has been seeking, for more than a year, to cut the huge financial incentives promised in 2017 by former Republican Gov. Scott Walker. Evers, a Democrat, has said Foxconn has fallen well short of job creation and investment goals for its manufacturing site in the Village of Mount Pleasant.
The Associated Press quotes an unnamed source who said the new deal will reduce the potential tax breaks by billions of dollars but still leave potential incentives for the company that are worth more than $10 million.