Wisconsin denies Foxconn tax benefits over failed manufacturing plant promises
An application for tax subsidies was denied on Monday
Taiwan-based Apple supplier Foxconn is failing to deliver on promises associated with its multibillion-dollar manufacturing facility in Wisconsin – so much so that the state is withholding coveted tax incentives.
The world’s largest electronic provider was promised a $3 billion incentives package, but failed to meet key milestones necessary to receive subsidies, documents first reported by The Verge showed.
The Wisconsin Economic Development Corporation on Monday denied Foxconn’s application for tax subsidies on the basis that it did not hire the promised number of eligible employees and that it was not following through on plans to build a liquid crystal display fabrication facility.
“It is evident from the Recipients’ 2019 Annual Project Report that the recipients are not building a 10.5 Fab, and that current activities are smaller in scale and economic impact to the region and the State of Wisconsin than those projected by the analyses run on the 10.5 Fab when WEDC initially approved and executed the agreement,” the WEDC wrote.
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As noted by The Verge, Wisconsin lawmakers have tried to renegotiate the company’s contract for the facility – but have so far been unable to do so.
Wisconsin lawmakers originally put together a $3 billion incentives package to lure the company to the state.
A spokesperson for Foxconn did not return FOX Business’ request for comment.
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The deal to build the facility was struck in 2017 by former Republican Gov. Scott Walker, and has been touted by President Trump as a victory for the U.S. manufacturing sector. As part of the deal, state lawmakers negotiated a package including about $3 billion worth of incentives.
All along there have been concerns Foxconn may not fulfill its end of the bargain, after it promised in 2013 to build a $30 million factory in Pennsylvania that never materialized.