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Wisconsin governor and Foxconn chairman sign contract for huge factory, huge state aid

Rick Romell, Milwaukee Journal Sentinel on

Published in Business News

The company would have to spend at least $9 billion on its production complex. It also would be eligible for $150 million in sales tax savings.

Through 2022, Wisconsin could recoup all of the tax credit money if Foxconn lies to the state, shuts down its manufacturing operations, or moves them elsewhere. Beginning in 2023, those potential penalties are capped at $965 million, and fall to $386 million by 2032.

Wisconsin also could claw back additional money -- up to $500 million beginning in 2023 and then steadily decreasing -- if Foxconn doesn't hit minimum jobs numbers.

Hon Hai Precision Industries -- the overarching corporate entity informally known Foxconn -- would cover 75 percent of any penalties Gou himself would cover 25 percent.

Still left to be executed is a contract between the company and two local government entities, the Village of Mount Pleasant and Racine County, on another $764 million in incentives. The parties have signed a memorandum of understanding describing the general terms.

(c)2017 Milwaukee Journal Sentinel

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