Foxconn Secures More Tax Credits: Total Subsidies Surpass $52M!

Big news is brewing in Mount Pleasant, Wisconsin! Foxconn Technology Group is set to pocket a whopping $8.75 million in state tax credits this year, all thanks to their ongoing investments and job creation efforts. With this latest boost, their total tax credits have soared past an impressive $52 million, as reported by state officials.

Just a few weeks ago, the Wisconsin Economic Development Corporation rang the bell on this new round of tax incentives. In 2023 alone, Foxconn brought 1,114 jobs to the area, alongside a capital investment of nearly $24.6 million. Sure, those figures dipped compared to the previous year, but the company’s tax credits shot up from $6.3 million in 2022 — a testament to their continued commitment to growth!

Reflecting on last year, Foxconn did manage to grow their workforce by 261 new jobs in 2022, but that growth slowed significantly in 2023 with just 85 new positions added. Their capital investment also faced a slight decline, dipping to $24.6 million from the previous year’s $25.7 million.

Yet, Foxconn remains optimistic! They announced that they’ve actually expanded their employee base beyond what’s reported for 2023, indicating that they’ve funneled nearly $2 billion into Wisconsin through salaries, taxes, and investments by 2024.

The Taiwan-based giant emphasizes the pivotal role their Wisconsin campus plays in the global data server manufacturing arena. “Our operations here contribute to Foxconn’s status as a leading manufacturer of 40% of the world’s server supply,” they stated. “We’re thankful for our dedicated team of over 1,000 employees who make this possible.”

Foxconn first dipped into the tax credit pool in 2021, raking in $28.8 million for job creation and investment aimed at bolstering their operations. This was followed by additional rounds of tax credits — $8.57 million for 2021 and $6.3 million for 2022 — showcasing the company’s fluctuating success in meeting expectations.

These incentives stem from a restructured agreement with the state in 2021 after Foxconn acknowledged their initial plans would not be realized. The revamped deal offers up to $80 million for 1,454 jobs and a staggering $672 million in investments — a far cry from the nearly $3 billion initially promised under the original 2017 agreement.

However, not everyone is convinced of Foxconn’s long-term commitment. Kelly Gallaher, a local resident and vocal critic, expresses skepticism about the company’s intentions: “Once those state incentives run dry, I doubt anyone would be surprised if they decided to pick up and leave.”

On the flip side, Sean Ryan, communications director for Mount Pleasant, highlights Foxconn as the village’s largest taxpayer, with investments that have paved the way for a burgeoning Microsoft development in the area — a project expected to make Microsoft the largest taxpayer soon.

Earlier this year, Microsoft unveiled plans for a jaw-dropping $3.3 billion investment in a data center right in Mount Pleasant, advancing swiftly on land that was once earmarked for Foxconn’s original vision.

As the future unfolds, all eyes will be on Foxconn and Microsoft. The local economy hangs in the balance, and the stakes couldn’t be higher. Will Foxconn remain a cornerstone of Wisconsin’s tech landscape, or will they shift gears once the incentives fade away? Only time will tell!