Foxconn contract approved
On an 8–2 vote, the Wisconsin Economic Development Corp. (WEDC) approved a $3 billion Foxconn contract that comes with a personal guarantee from Foxconn’s CEO, Terry Gou, to assume 25% of any penalties (“clawbacks”) should the company fall short of contract terms including failing to meet minimum hiring thresholds. Foxconn’s parent, Hon Hai Precision Products, would be on the hook for the remaining 75%.
State Sen. Tim Carpenter (D-Milwaukee) and Democrat and 2018 gubernatorial candidate Rep. Dana Wachs, voted against the deal.
Foxconn, a Taiwanese manufacturer of liquid-crystal display screen, will build a $10 billion, 20 million-square-foot campus and production facility in Mount Pleasant in southeastern Wisconsin. Once signed by Gov. Scott Walker, the Foxconn deal will reportedly be the largest-ever corporate financial-incentive package in U.S. history.
According to the contract with Wisconsin, the company must also create a minimum of 5,850 jobs by 2023 and maintain at least 6,500 workers from 2024 to 2032. While Foxconn has floated a goal of 1,040 jobs in 2018, it only needs to create 260 jobs to qualify for tax credits. The jobs must pay at least $30,000 per year, and average $53,875. The state will pay a 17% tax credit on all jobs paying between $30,000 and $100,000 per year.