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State says Foxconn can’t get billions in tax credits until new deal | Business news



Former Republican Gov. Scott Walker signed the treaty in 2017, and Hughes was appointed by Democratic Gov. Tony Evers.

In a statement Monday, Foxconn said company employees “came to the table with WEDC representatives in good faith to discuss new terms of an agreement that would have an impact on Racine County and the village of Mount Pleasant, third country partners in the development project.” “.

“The ruling of the WEDC as inadmissible during the current discussion is a disappointment and a surprise that threatens bona fide negotiations,”

; Foxconn said in a statement.

In the summer, the company said it had created enough jobs in southeastern Wisconsin last year to receive state funding – although it was said almost a year ago that $ 3 billion in tax subsidies would not be distributed until a new one was drafted. a contract that corresponds to the project. Government officials argue that the tax subsidies agreed in the contract are tied to jobs and capital investments for specific projects that Foxconn fails to provide.

This year would mark the state’s first payment of repayable tax credits to Foxconn. In 2018, the company dropped 82 jobs to the minimum required to apply for state tax credits.

Foxconn said it created more than 800 jobs in 2019, more than the 520 minimums needed for government subsidies. However, under the agreement, the goal was to have 2,080 full-time jobs and more than $ 3.3 billion in capital expenditures by the end of 2019. The Foxconn jobs report this summer also identified more than $ 415 million in capital investment – a significant difference of $ 280 million reported by Foxconn in April.


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