Last updated on May 11th, 2020 at 11:32 am
Foxconn Technology Group says it created more than the minimum 520 jobs required for it to earn any tax credits for 2019 under its $2.85 billion incentive package with the state of Wisconsin.
The company also said it invested more than $280 million in its Mount Pleasant campus over the last two years, potentially making it eligible for $42 million in capital expenditure tax credits.
“Alongside our local partners, we have built a strong foundation for the Wisconsin project and set the stage for Wisconn Valley to be the center of a high-technology hub for North America,” Jay Lee, board member and vice chairman for Foxconn Technology Group, wrote in a letter to Wisconsin Economic Development Corp. secretary and CEO Missy Hughes.
Lee wrote that the company’s internal estimates suggested more than 550 of the 600 people Foxconn employed would qualify for jobs tax credits.
A BizTimes review of the wage data Foxconn provided to WEDC suggests the company could receive nearly $2.9 million in job creation tax credits.
However, it is not immediately clear if WEDC will verify that Foxconn is eligible for that amount. The company and state have disagreed over whether its jobs and investments will qualify for tax credits.
Foxconn’s plans have shifted from an originally planned Gen 10.5 LCD facility, designed for making large screens, to a Gen 6 plant better suited for making a variety of different sizes. The contract between Foxconn and the state, however, specifically references a Gen 10.5 plant.
Another potential issue is the role of Foxconn Industrial Internet, a publicly-traded company that is separate from Foxconn’s corporate parent Hon Hai Precision. Fii is not among the companies that signed on to the Foxconn contract.
“Our conversations with Foxconn about aligning the contract with the project continue – it is WEDC’s objective to do so in order to support the project,” Missy Hughes, secretary and chief executive officer of WEDC, said in a statement.
Even without those potential issues, it will likely be several months before it is clear whether Foxconn will receive tax credits or not. The state’s contract with Foxconn requires a third party to review the annual report, which isn’t expected to be done until May 16.
“WEDC will then review the company’s project performance report, supporting workbooks and other documents, and the independent auditor’s report, a process that is likely to take several months,” Hughes said.
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