The bulk of the $3 billion tax incentive package Wisconsin is offering manufacturing giant Foxconn to locate in the state would be paid out in cash and not in tax credits.
Under the deal unveiled Thursday that the Legislature would have to approve, the state would pay the company up to $200 million a year for 15 years. Gov. Scott Walker's administration described the payment as a tax credit, but because the state already waives all taxes on manufacturing credits in the state, the incentives would be paid as cash rather than a credit against taxes owed.
The Milwaukee Journal Sentinel first reported on that part of the deal Friday. The money would not be paid until Foxconn hits investment and job creation targets, and it could be recovered if it lays off workers.
Gov. Scott Walker is taking to the air to tout news that global electronics giant Foxconn plans to invest $10 billion on a new manufacturing facility in southeast Wisconsin.
The Friday tour taking Walker far from where the plant is located gives him a chance to talk up how the plant will help the entire state, not just the region where it's located. Walker plans to travel to La Crosse, Eau Claire, Wausau and Appleton.
Lobbyist Bill McCoshen was Wisconsin's commerce secretary under then-Gov. Tommy Thompson. He says the tour gives Walker a chance to win over state lawmakers outside of the Milwaukee area to try and get their support for a $3 billion tax incentive bill the Legislature must pass to seal the deal.
That bill has not yet been released.
Wisconsin's deal with electronics giant Foxconn requires the state Legislature to pass a $3 billion incentive package no later than Sept. 30.
Gov. Scott Walker and Foxconn CEO Terry Gou signed a memorandum of understanding Thursday at Milwaukee's art museum. The memorandum says Foxconn commits to investing $10 billion in Wisconsin and create 13,000 jobs over six years.
Wisconsin promises to extend $3 billion in tax breaks, but the Legislature must approve those incentives. The Republican-controlled Legislature is expected to consider them in a special session next month.
Walker on Thursday touted the deal as a once-a-generation opportunity that will transform Wisconsin's economy. No site has been selected yet for the Foxconn plant, but the company is eyeing the southeast part of the state.
