Tony Evers: State's reduced financial commitment to Foxconn opens up opportunities [View all]

The new deal with Foxconn Technology Group has opened the door to a major windfall in state dollars that could spur other economic development opportunities across Wisconsin, Gov. Tony Evers said Friday.

In the short-term, the state now expects to be on the hook for an estimated $37.4 million that the Evers administration had not anticipated when crafting its 2021-23 budget proposal.

That’s because Foxconn wasn’t expected to qualify for any tax credits over the next two years, but now they likely will under the new deal.

But in the long-term, the state’s overall commitment to Foxconn under the new agreement has fallen from $2.85 billion in state tax subsidies down to $80 million. Due to a separate manufacturing tax credit that allows manufacturers to pay almost no corporate tax, the tax credit is paid almost entirely by state taxpayers.

Read more: https://madison.com/wsj/news/local/govt-and-politics/tony-evers-states-reduced-financial-commitment-to-foxconn-opens-up-opportunities/article_2101032b-ecc0-507a-a2f2-94d00f28591d.html