The
Wisconsin Economic Development Corp. is offering pharmaceutical giant
Eli Lilly up to $100 million in tax credits to support the company’s expansion project in Kenosha County.
This past year, Indianapolis-based Lilly spent nearly $1 billion to acquire a pharmaceutical facility built by Nexus Pharmaceuticals in Pleasant Prairie. In late 2024, the company announced plans to invest another $3 billion to expand the facility and create 750 new jobs.
The project is intended to extend Lilly’s injectable product manufacturing network and help meet growing demand for diabetes and obesity medications.
On Tuesday,
Gov. Tony Evers announced WEDC would provide the company up to $100 million in Enterprise Zone tax credits.
“I’m proud of my administration’s efforts to invest in new economic opportunities, expansions, and developments in southeastern Wisconsin in recent years with leading brands like Eli Lilly and Company moving and growing their operations here,” Evers said. “Coupled with our state’s designation as a U.S. Regional Tech Hub, history of game-changing innovations, and world-class manufacturing, Wisconsin is proud to partner with Lilly as they make this historic investment in our communities. This is great news for Wisconsin.”
The WEDC’s Enterprise Zone credits are used to support large economic development projects. Generally, companies receive a credit of 7% of eligible payrolls and 10% of eligible capital expenditures.
“We are grateful for the partnership and leadership shown by Gov. Evers, WEDC, state, county, and local officials, as well as other stakeholders in supporting this project,” said
Edgardo Hernandez, executive vice president and president of Lilly Manufacturing Operations. “Together, we’re advancing innovative manufacturing capabilities, building capacity for the medicines of tomorrow, creating high-quality jobs, and ensuring that patients here and around the world have access to life-changing treatments. We look forward to contributing to the region’s strong legacy of innovation and economic vitality for years to come.”
Lilly’s tax credits are contingent on the company creating at least 700 new jobs and at least $2.2 billion in capital investment.
“This project represents not just a major step forward for the company and its manufacturing capacity, but for the future of our state as a global leader in the field of biohealth and biopharmaceuticals,” said
Missy Hughes, secretary and CEO of WEDC.
The $100 million award is the largest in the history of the Enterprise Zone program. The previous high was $70.5 million for Milwaukee Tool, which reached that total over the course of several expansion projects.
Other large awards over the past 15 years include Mercury Marine in 2010, an award of $65 million in credits, Kohl’s Corp. in 2012 receiving $62.5 million, Green Bay Packaging in 2018 receiving $60 million and Komatsu Mining receiving $59.5 million in 2018.
Foxconn’s original $2.85 billion tax credit incentive was awarded under a similar program to the Enterprise Zone that was created by special legislation. That tax credit was later reduced to a potential $80 million award under a renegotiated deal.
Companies generally have a number of years to earn their tax credits and do not always receive the full amount.
To date, Foxconn has been verified for $52 million in tax credits, Milwaukee Tool has earned $51 million, Mercury Marine earned $65 million, Kohl’s earned $43 million, Green Bay Packaging earned $57.75 million and Komatsu earned $49.8 million.
