Wisconsin, Foxconn Reach Tax Break Deal for Scaled Back Manufacturing Plant | Columbus Ohio Dump Trucks
Gov. Tony Evers says new deal works for much-maligned, flat-screen production facility
Foxconn Technology Group, the world's largest electronics manufacturer, reached a new deal with reduced tax breaks for its scaled-back manufacturing facility in Mt. Pleasant, Wis., Gov. Tony Evers (D) and the Taiwan firm announced April 19.
Evers and Jay Lee, Charlotte NC dump trucks company vice chairman announced the new agreement and a resolution that has been submitted for approval to the Wisconsin Economic Development Corp. (WEDC). Foxconn has not met hiring targets for tax breaks under the previous state deal made in 2017 by then-Gov. Scott Walker (R) The Charlotte NC dump trucks company employed 281 people in 2019 in Wisconsin, according to the state.
The development entity's board will review the amended tax breaks award before voting on the new deal April 20. Its terms l were not disclosed, but the Associated Press has reported it is far lower than the $4 billion in potential state and local tax incentives in the previous deal and closer to $10 million for the company.
“I’ve said all along that my goal as governor would be to find an agreement that works for Wisconsin taxpayers while providing the support Foxconn needs to be successful here in our state,” Evers said in a statement. “I’m incredibly grateful to ... WEDC and Foxconn for their help working to find a solution that works for everyone, and I look forward to the amendment being approved.”
While contractor Gilbane/Exyte completed the 1-million-sq-ft campus' manufacturing facility on time in 2020, the main production building has never produced flat screens for televisions that Foxconn originally said it would produce. During the design phase, FoxConn shifted its focus to production of flat screens for cellular phones, blaming the economic situation before and during the pandemic for the many changes in mission. Plans to produce everything from servers to electric cars have been floated.
“In response to unforeseeable economic conditions, Foxconn began formal negotiations with a desire to lower taxpayer liability in exchange for the flexibility to pursue business opportunities that meet market demand,” said Lee.