Saturday, December 19, 2020

Foxconn willing to agree to fewer tax credits 'in exchange for flexibility'; new agreement 'within reach

From JSOnline:

Ricardo Torres
Milwaukee Journal Sentinel

Foxconn Technology Group is willing to accept a reduction in state tax credits “in exchange for a flexible business environment in Wisconsin,” the company has told state officials.

The change in position was mentioned in letters between the company and the Wisconsin Economic Development Corp. obtained Friday by the Journal Sentinel.

The state agency this fall determined Foxconn was not eligible for tax credits in 2020 for hiring and investments made in 2019. Since its inception in 2017, the Foxconn project has shrunk in size and scope, which WEDC views as a major change to the contract that covers the tax credits. The state says Foxconn is not in compliance, a decision Foxconn has challenged. 

Under the initial contract negotiated between the state and Foxconn, the company would be eligible for up to $2.85 billion in state money.

In a Nov. 23 letter from Foxconn attorney Robert Berry to Jennifer Campbell, chief legal officer for WEDC, the company outlines its disagreement with the department's decision to not grant tax credits for work done in 2019. The company also expresses a willingness to negotiate.

The letter states that WEDC and Foxconn “had a mutual understanding that the overarching goal of (Foxconn’s) investment was to implement a transformational and sustainable high-tech manufacturing and technology ecosystem in Wisconsin that brings long-term investment and jobs.” 

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