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Foxconn said on Friday that Foxconn Technology Group will question the decision of the Wisconsin Economic Development Corporation not to issue corporate tax credits.

Foxconn’s lawyer Robert Berry wrote to WEDC’s chief legal officer Jennifer Campbell, stating that the company opposed the decision, especially “on terms and timelines.”

The letter sent on Friday pointed out that Foxconn’s obligation to the state is to “create jobs and capital investment.” The company stated that WEDC’s decision not to grant corporate tax credits “not only deviated from this understanding, but also deviated from the contract schedule.”

“Despite frustration and disappointment over WEDC’s decision and the method that WEDC chose to notify (the company) of the decision, (the company) intends to continue to cooperate sincerely with WEDC to resolve this difference within the next 30 days. The letter reads:

Missy Hughes, WEDC’s secretary and chief executive officer, said in a statement that her department “has not yet received Foxconn’s objection to WEDC’s determination that the company is not in compliance with state tax incentives.”

Hughes said: “Once Foxconn can elaborate on the scope and nature of its development projects, WEDC is ready to work out a new agreement to balance the needs of the company with the interests of Wisconsin taxpayers.”

The Foxconn project was touted by President Donald Trump. Donald Trump said he played a matchmaker between Foxconn and Wisconsin, but the scale of the project has shrunk, the number of recruits has declined, and he suspects it Can it achieve its goal of transforming the state’s economy?

Foxconn will build a 10.5th generation factory to produce large LCD screens. The project will be an investment of up to 10 billion U.S. dollars and will provide up to 13,000 jobs.

In return, if Foxconn meets various benchmarks for employment and capital investment, the legislature controlled by the Republican Party will approve subsidies of up to $2.85 billion. The company also received $150 million in business tax relief, bringing the state’s total revenue to $3 billion.

According to the agreement signed by Foxconn and WEDC in November 2017, Foxconn has 14 working days to question this decision.

Foxconn and WEDC now have 30 days to resolve this issue. WEDC “reserves the right to adjust subsequent tax credits or demand repayment.”

On October 12, WEDC decided not to provide Foxconn with tax credits for capital investment and employment in 2019. The state agency determined that Foxconn only employed 281 full-time employees who were eligible for tax credits, and the capital expenditure was only US$300 million.

A few days before this decision, state officials sent a memo to administrative secretary Joel Brennan, stating that the factory in Mount Pleasant “may be more suitable for demonstration purposes. It’s not a viable commercial glass manufacturing plant.”

The memorandum stated that Foxconn’s factory “if it operates, it will be the world’s smallest sixth-generation factory (factory). It is less than one-twentieth the scale of the promised 10.5-generation project, and if it can be fully operational, It will use., only a small part of the local residents who WEDC hopes to work.”

Since making this decision, Foxconn has insisted on hiring more than 520 qualified full-time employees, which is the minimum requirement for tax credits, and the company claims to have invested $750 million.

Foxconn founder Guo Taiming recently stated that Foxconn is committed to the project in Mount Pleasant.

Foxconn and WEDC officials have held several meetings to renegotiate the terms of the agreement, but so far, the negotiations have not been successful.

WEDC board member and parliamentary minority leader D-Oshkosh Gordon Hintz said in an email that “the decision to reject the credit was due to Foxconn’s breach of contract”.

Hintz said: “It is clear that as long as the project is no longer as outlined in the contract, Foxconn is not eligible for any honors, even if the goal of job creation is achieved.”

“Therefore, WEDC’s decision not only affects 2019, but also clearly stated that unless Foxconn continues to advance the projects outlined in the contract or renegotiates the contract, Foxconn will not receive any points in the next few years.”

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