Article 592W9 Wisconsin Denies Foxconn Tax Subsidies after Contract Negotiations Fail

Wisconsin Denies Foxconn Tax Subsidies after Contract Negotiations Fail

by
martyb
from SoylentNews on (#592W9)

upstart writes in with an IRC submission for nutherguy:

Wisconsin denies Foxconn tax subsidies after contract negotiations fail:

Foxconn isn't building what it promised and failed to hire enough people

Through the many twists and turns of Foxconn's troubled Wisconsin project, one thing has long been clear: the company is not building the promised 20 million-square-foot Gen 10.5 LCD factory specified in its contract with the state. Even before President Trump broke ground on the supposed factory in June 2018, Foxconn said it would instead build a far smaller factory than it had proposed.

The discrepancy between what Foxconn is doing and what it said it would do in its contract has only grown since then, and it has brought Wisconsin and the company to an impasse. Documents obtained by The Verge show that attempts to renegotiate that contract have so far failed, and today, the Wisconsin Economic Development Corporation (WEDC), which oversees the deal, rejected Foxconn's application for tax subsidies on the grounds that Foxconn had not carried out the Gen 10.5 LCD factory project described in its original contract.

WEDC also noted that even if whatever Foxconn is currently doing had been eligible under the contract, it had failed to employ the minimum number of people needed to get subsidies. Foxconn needed to employ at least 520 people at the end of 2019 to receive subsidies and claimed to have hired 550, but WEDC estimated that only 281 would qualify under the terms of the contract.

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