OZAUKEE COUNTY — Transformational. It’s a word that
cannot be overused when talking about the state luring
technology manufacturing giant Foxconn to Wisconsin,
according to state Sen. Duey Stroebel, R-Cedarburg.
“There is going to be impact from the state line to
Madison to Sheboygan,” he said of the deal that could
bring up to 13,000 jobs to southeast Wisconsin, likely
in the Racine-Kenosha corridor along Interstate 94.
some of that impact will likely be felt in Ozaukee
County in the form of more business for some existing
companies and job opportunities for its residents,
according to those who have been closely studying the
for all of the excitement that goes along with the
reported largest jobs attraction deal in U.S. history,
great caution must also be exercised, officials say.
Foxconn could be eligible for up to $3 billion in tax
credits over 15 years, according to a Foxconn fact sheet
provided by Republican state Rep. Rob Brooks of
Up to $1.5 billion in state
income tax credits for job creation
Up to $1.35 billion in state income tax credits for
Up to $150 million for the sales and use tax exemption
(sales tax holiday) Brooks applauded the governor and
his team for protecting Wisconsin and its residents from
all angles, including fiscally and environmentally, with
very little risk of harm.
think we’re really covering the state,” he said.
date, the only action taken has been a memorandum of
understanding between the state and Wisconsin Economic
Development Corp. and Foxconn and its parent company,
Hon Hai Precision Industry Co., outlining the incentives
based on jobs and capital expenditures.
Gov. Scott Walker has convened a special session of the
Legislature this week, in which members will need to
address a bill covering the numerous aspects of the
agreement. The first of several public hearings is
scheduled for 1:30 p.m. today at the state Capitol in
Among the issues to be weighed by legislators are the
tax credits, environmental impacts and transportation
costs. Stroebel, as well as Brooks, insist that there
will be no credits whatsoever if Foxconn does not keep
up its end of the bargain, namely creating the set
number of jobs within a set period of time and investing
“It’s pay-as-you grow,” Stroebel said. “It’s not like
we’re saying, ‘here’s a big chunk of money.’ They (Foxconn)
will need to perform to get any of this.”
Because the incentives are tied to actual performance,
Foxconn can only earn the maximum amount of incentives
if they fulfill the proposal to create 13,000 new jobs
at an average salary of $53,875 and spend $10 billion in
Wisconsin. The contract will also contain clawbacks that
will require the company to pay back tax credits if the
jobs and investment are not kept in Wisconsin.
you want to draw a major worldwide company to the state,
that is the cost of being competitive,” Brooks said.
Ozaukee Economic Development Executive Director Kathleen
Cady Schilling said it is too early to say how the
announcement could impact Ozaukee County, but that it
will likely bring more production and profits to certain
manufacturers that would act as suppliers to the