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Foxconn Tax Credits Still in Limbo

Wednesday, December 18th, 2019 -- 9:55 AM

(AP) -Wisconsin’s economic development agency needs to modify its procedures to ensure that tax credits aren’t awarded for Foxconn Technology Group employees who don’t perform work in the state, which would violate state law and the contract with the company, an audit released Tuesday said.

It is the second year in a row that the nonpartisan Legislative Audit Bureau has raised the concern. Foxconn, the world’s largest electronics manufacturer, is building a display screen manufacturing plant in southeastern Wisconsin. It has yet to qualify for any tax credits related to job creation under the nearly $3 billion deal struck with the state in 2017. The audit raises even more questions about if and when Foxconn might qualify for any of the incentives that were a part of the deal. The President, who attended the groundbreaking ceremony, hailed the Foxconn project as the “eighth wonder of the world” and a sign of a revitalized American manufacturing economy.

But Foxconn’s plans in Wisconsin have shifted, especially after the defeat of then-Republican Gov. Scott Walker, who negotiated the deal and was a champion of the project. Gov. Tony Evers, a Democrat, has said Foxconn will receive no tax incentives until it modifies its deal with the state.

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