Foxconn incentives package to cost Wisconsin $150M in lost tax revenue
Wisconsin may have won the fight for Foxconn’s first ever U.S. manufacturing plant, but fiscal estimates show the state’s incentives package for the Taiwanese electronics giant could prove costly for citizens.
Gov. Scott Walker’s (R-Wis.) $3 billion package could wind up costing local governments nearly $150 million in lost sales tax. According to state agencies' fiscal estimates, provisions blocking sales taxes on construction materials and equipment would cost the state about $139 million. Local governments would lose about $10.7 million.
Payroll and capital expenditure tax credits would cost the state about $2.85 billion.
The bill also calls for borrowing $252.4 million to rebuild Interstate 94. The interest on that borrowing from 2019 through 2042 would total $408.3 million.
Foxconn will make an initial investment of $10 billion to create its new manufacturing facility in the U.S. The project could generate as many as 13,000 direct jobs, according to Gov. Scott Walker (R-Wis.), and the starting salary for those positions will be $53,000 plus benefits. The Foxconn plant could also potentially create 22,000 indirect positions within Wisconsin.
Wisconsin still could have other issues to face where the new plant is concerned, including training a high-skill labor force. Thousands of new technology jobs will be open at the plant in the Rust Belt state that could require a high level of expertise, considering starting salary estimates.
The Associated Press contributed to this report.