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Tony Evers flows Foxconn's lowered employment target in Wisconsin

MADISON – Foxconn's $ 3 billion deal with Wisconsin taxpayer allows the Taiwanese giant to get tax credits every year if the company creates hundreds of jobs annually – a goal Gov. Tony Evers says it can be "too expansive". Evers and Foxconn officials talk about rewriting a contract describing the size of investment Foxconn needs to make in Wisconsin to get tax-funded subsidies &#821 1; an agreement that currently requires Foxconn to meet job creation targets before any government tax credits paid. "The goal is perhaps too expansive," Evers said Sunday in a look at WKOW's "Capital City Sunday." "Whether it's 1,300 jobs or 13,000 jobs, all state governors, including me, want them to succeed and create as many jobs as possible." In 2018, the company got to create 260 jobs to be able to receive some tax credits – a goal they fell without meeting with 82 jobs. The number of jobs the company needs to create to continue to receive credits is growing every year by hundreds. Evers said Foxconn has "changed his footprint" in Wisconsin, "we need to see how we can all benefit from it" but added that it is too early to say what specific changes could be made. Evers comments Sunday presents the first clue about the potential changes that can be made in the state's contract with Foxconn. The company in recent months has said It will build a smaller manufacturing plant in Racine County than planned when the former government Scott…

MADISON – Foxconn’s $ 3 billion deal with Wisconsin taxpayer allows the Taiwanese giant to get tax credits every year if the company creates hundreds of jobs annually – a goal Gov. Tony Evers says it can be “too expansive”.

Evers and Foxconn officials talk about rewriting a contract describing the size of investment Foxconn needs to make in Wisconsin to get tax-funded subsidies &#821

1; an agreement that currently requires Foxconn to meet job creation targets before any government tax credits paid.

“The goal is perhaps too expansive,” Evers said Sunday in a look at WKOW’s “Capital City Sunday.” “Whether it’s 1,300 jobs or 13,000 jobs, all state governors, including me, want them to succeed and create as many jobs as possible.”

In 2018, the company got to create 260 jobs to be able to receive some tax credits – a goal they fell without meeting with 82 jobs. The number of jobs the company needs to create to continue to receive credits is growing every year by hundreds.

Evers said Foxconn has “changed his footprint” in Wisconsin, “we need to see how we can all benefit from it” but added that it is too early to say what specific changes could be made.

Evers comments Sunday presents the first clue about the potential changes that can be made in the state’s contract with Foxconn.

The company in recent months has said It will build a smaller manufacturing plant in Racine County than planned when the former government Scott Walker is doing a deal in 2017 with the company in exchange for 13,000 jobs and a $ 10 billion facility.

RELATED: Speaker Vos anticipates changes to the Foxconn contract will not win approval, stands claiming the company will create 13,000 jobs

RELATED : Tony Evers lowers expectations for Foxconn and does not see 13,000 jobs created

FULL COVER: Foxconn in Wisconsin

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Last week, Evers said he no longer believed the company’s plans would cause many jobs in the state and wanted to change the contract to reflect fewer expected positions.

It is unclear whether officials of Evers administration and the Wisconsin Economic Development Corp are considering reducing the share of wages and capital contributions of state taxpayers if the scope of the project is reduced.

A spokesman for Evers was not immediately available to answer questions Sunday.

The terms of payment provide protection for state taxpayers if Foxconn does not create jobs and investments, but the payments that the company can make if it follows through its commitments are generous compared to the incentive packages that other companies have received from the state.

If government incentive agreements with companies usually have taxpayers covering 7% of salary, Foxconn will receive 17%. Foxconn would also get 15% of its capital investment paid back instead of the usual 10%.

Evers said that “it’s too early to talk about how to get there but the fact is that they have made the business decision and we work with them and discussions are considering changing the deal.”

Of the 3 billions of dollars in state incentives Foxconn is eligible to receive, Foxconn currently has to create 13,000 full-time jobs with an annual salary of $ 53875 to get $ 1.5 billion in credit.

Foxconn is entitled to receive $ 150 million in deduction for VAT on purchases Foxconn does within Wisconsin and can get an additional $ 1.35 billion in credit by investing $ 9 billion in its Mount Pleasant complex.

The tax points are “refundable” which means that if Foxconn is not owed taxes, it will still get the money. As Wisconsin waives almost all taxes on manufacturing profits in the state, it is likely that Foxcon’s credits would be in the form of cash payments.

Assembly speaker Robin Vos, R-Rochester, in a separate appearance on Sunday’s “Capital City Sunday,” Foxconn becomes part of Wiscon’s “ecosystem” and believes Foxconn still creates 13,000 jobs in the state because the company continues to stand by it number.

Vos, representing the parish district where Foxconn builds his first US manufacturing area, said last week that he believed Evers was undermining the state agreement with Foxconn after Evers said he wanted to renegotiate the contract.

“It’s beyond my level of understanding to believe that a governor of Wisconsin is basically rooting for the failure of the greatest economic development in our state’s history,” Vos said during an interview on WISN Thursday.

But Evers said his officials are working with Foxconn officials about the possible changes.

“We work directly with Foxconn on this – this is not an Evers supplement on Foxconn. This is Foxconn and WEDC and Evers administration looking at what’s best for that company and for the state of Wisconsin,” Evers said. .

A spokesman for Vos and a Senate spokesman Majority leader Scott Fitzgerald, who also criticized Ever’s comments about possibly changing the Foxconn contract, was not directly available Sunday. 19659003] Rick Romell from Milwaukee Journal Sentinel contributed to this report.

Contact Molly Beck in the Capitol office at (608) 258-2263 or at [email protected] Follow her on Twitter at @MollyBeck .

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