10.13.20 - Three years after landmark legislation was passed promising Foxconn Technology Group billions in tax credits with a groundbreaking ceremony in Mount Pleasant Wisconsin, the company will not be receiving any state tax credits for work done in 2019.
According to the Wisconsin Economic Development Corp., Foxconn has hired only 281 people eligible for tax credits and has made only $300 million in capital expenditures, not fulfilling the goals set out in the contract signed by Foxconn and the state.
Foxconn said it was surprised by the decision, and the company's role in Wisconsin continues to be hotly debated amid a hyper-partisan political environment with deep divisions among taxpayers who are paying the bill for the billions in tax credits that were part of the original deal.
A number of years ago, the state Legislature passed a bill that could provide Foxconn up to $2.85 billion in tax credits over time if the company meets certain investment and hiring goals. At the time, Foxconn planned to create a Generation 10.5 LCD advanced manufacturing facility to make large screens for electronic devices, with the promise of creating 13,000 jobs in the state. The company is now planning on building a Gen 6 facility, which makes much smaller screens for TVs, tablets and smartphones.
Source: Bloomberg
