Foxconn eligible for more than $8.5 million in tax credits for 2021

An aerial image of the Foxconn site, taken Oct. 4.
An aerial image of the Foxconn site, taken Oct. 4. Credit: Curtis Waltz | .aerialscapes.com

Foxconn Technology Group has met the benchmarks required to access more than $8.5 million worth of tax credits this year. A series of verification forms submitted to the Wisconsin Economic Development Corp. show the electronics manufacturer has created 768 jobs throughout its life in Wisconsin.

Foxconn invested a total of $77,379,609 into its Mount Pleasant campus in 2021, according to the verification forms.

The company is eligible for $8.57 million in tax credits based off its total job creation numbers by the end of 2021 and its capital investment during 2021.

Foxconn made $266,067,364 worth of capital investments in 2020, according to the verification forms. The company collected $28.8 million in tax incentives that year.

Foxconn needed to reach a minimum of 747 jobs this year to access the available tax credits. Foxconn reached about 80% of its planned job creation goal for 2021, which was 934 jobs. The company also exceeded the total capital investment amount expected for 2021.

“As of this year, Foxconn has invested nearly $1 billion in our Science and Technology Park in Wisconsin and our business activities are beginning to bear the fruits of our labor for ourselves and our customers,” said Young Liu, chairman of Foxconn, in a statement in the company’s 2021 performance report.

In an initial development agreement, Foxconn executives agreed to invest $10 billion to construct a 20 million-square-foot manufacturing campus and create 13,000 jobs.

Five years later, Foxconn’s 825-acre Area 1 – one of four areas in a tax incremental financing district that had been planned with the expectation of other manufacturers flocking to the area – consists of four buildings: a 1-million-square-foot “advanced manufacturing” facility; a 300,000-square-foot “smart manufacturing center,” a 120,000-square-foot “multipurpose building” and a 100-foot-tall “high performance computing data center globe.”

Under the state’s original incentive package with the company, Foxconn could have received up to $2.85 billion in tax incentives if the company created 13,000 jobs and invested $10 billion in capital expenses in the complex.

After Tony Evers was elected governor, the state renegotiated its deal with the company. The new incentive package offers the company up to $80 million in tax credits if it hires 1,454 workers and invests $672 million in capital spending in the complex by the end of 2025.

Ashley covers startups, technology and manufacturing for BizTimes. She was previously the managing editor of the News Graphic and Washington County Daily News. In past reporting roles, covering education at The Waukesha Freeman, she received several WNA awards. She is a UWM graduate. In her free time, Ashley enjoys watching independent films, tackling a new recipe in the kitchen and reading a good book.

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