With 1,114 Employees, Foxconn Earns $9 Million in Tax Credits
Foxconn saw slower job growth in 2023 as it gets closer to maxing out $80M in available tax credits.
Cars are parked near a globe at the Foxconn campus Wednesday, Oct. 6, 2021, in Mount Pleasant, Wis. Angela Major/WPR
Foxconn Technology Group is slated to receive nearly $8.75 million in state tax credits for investment and job creation at its Mount Pleasant campus in 2023. That brings the total amount awarded to the company up to more than $52 million, according to a state report.
Both hiring and investment were down in 2023 compared to 2022, but the total tax credits Foxconn qualified for were up from $6.3 million.
In 2022, Foxconn added 261 jobs from the previous year, the report shows. Last year, the company only added 85 jobs. Total capital investment declined by a little more than $1 million from $25.7 million spent in 2022, the report shows.
In a statement, Foxconn said it has added more employees beyond the ones reported in 2023, and as of 2024 has spent nearly $2 billion in the state through capital investments, payroll and taxes.
The Taiwan-based company also said its Wisconsin site is an important part of the “global data server manufacturing landscape.”
“Our operations here contribute to Foxconn’s role as a leading manufacturer of 40 percent of the world’s server supply,” the statement read. “We are grateful for our dedicated team of over 1,000 employees whose efforts make this possible.”
Foxconn first qualified for tax credits in 2021, earning $28.8 million for investment and job creation in 2020. The company qualified for $8.57 million for 2021 operations, and $6.3 million for 2022 operations.
Those subsidies came after the state renegotiated its contract with Foxconn in 2021, scaling it back from the original pact signed in 2017 by former Gov. Scott Walker. That agreement would have given nearly $3 billion in credits to the company, which was promising to hire 13,000 employees.
Snow surrounds the glass globe at the Mount Pleasant Foxconn campus on Thursday, Feb. 18, 2021. Angela Major/WPR
The current agreement — reworked by Gov. Tony Evers’ administration after Foxconn acknowledged it wouldn’t move forward with its original plans — offers up to $80 million for 1,454 jobs and $672 million in investment.
“Once there are no more state incentives, I think it would surprise no one that they will move on out,” she said. “I think they’re just playing a waiting game, and once they cap out, they’re gone.”
Sean Ryan, communications director for the Village of Mount Pleasant, said in a statement that Foxconn is currently the village’s largest taxpayer.
He also said the investments made to support Foxconn helped pave the way for Microsoft’s ongoing development in Mount Pleasant, which the village anticipates will make Microsoft its largest taxpayer in the coming year.
“We look forward to the future as both companies continue to generate long-term value for the village, and the entire region,” Ryan said.
Earlier this year, Microsoft announced a $3.3 billion investment for its Mount Pleasant data center development. Construction is already underway for the project on land previously slated for development by Foxconn.
An artificial intelligence data center is built on land once slated for development by Foxconn in Mount Pleasant on Wednesday, May 8, 2024, in Mount Pleasant, Wis. Angela Major/WPR
Foxconn qualifies for another round of tax credits, bringing total subsidies past $52M was originally published by Wisconsin Public Radio.
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More about the Foxconn Facility
- Foxconn Acquires 20 More Acres in Mount Pleasant, But For What? - Joe Schulz - Jan 7th, 2025
- Murphy’s Law: What Are Foxconn’s Employees Doing? - Bruce Murphy - Dec 17th, 2024
- With 1,114 Employees, Foxconn Earns $9 Million in Tax Credits - Joe Schulz - Dec 13th, 2024
- Mount Pleasant, Racine in Legal Battle Over Water After Foxconn Failure - Evan Casey - Sep 18th, 2024
- Biden Hails ‘Transformative’ Microsoft Project in Mount Pleasant - Sophie Bolich - May 8th, 2024
- Microsoft’s Wisconsin Data Center Now A $3.3 Billion Project - Jeramey Jannene - May 8th, 2024
- We Energies Will Spend $335 Million on Microsoft Development - Evan Casey - Mar 6th, 2024
- Foxconn Will Get State Subsidy For 2022 - Joe Schulz - Dec 11th, 2023
- Mount Pleasant Approves Microsoft Deal on Foxconn Land - Evan Casey - Nov 28th, 2023
- Mount Pleasant Deal With Microsoft Has No Public Subsidies - Evan Casey - Nov 14th, 2023
Read more about Foxconn Facility here
I agree with Kelly. This is no long term commitment by Foxconn; this is a “line your pockets then get out” move by the company. And when they move on, I’ll bet the state will be on the hook for unemployment and potential re-training costs
Also, I’d be curious what kind of salary is being paid for these jobs that are earning them credits. I remember that the big deal on the job creation was that the jobs would be higher paid technical manufacturing employment. Is that really happening, or are these just low paying stater jobs that the state is rewarding?
At least Evers managed to re-negotiate to minimize the damage that Scott Walker and Trump did when they were at the helm.
Foxconn is aptly named. Full emphasis on the “conn” that was committed on Wisconsin taxpayers by the company, with Scott Walker and DonOld Frump as co-conspirators, who looked at this deal with only dollar signs in their eyes. Obviously they did not perform their due diligence before guaranteeing $3B in tax credits in the initial deal.
When they max out their renegotiated credits and pull up stakes, maybe Microsoft will take over the facilities that Foxconn built.
Congratulations GOP, you ripped off Wisconsin taxpayers once again. Voters will be paying for this idiotic deal for years and got literally nothing out of it. You should be ashamed. Disgusted.
I know that I have fuzzy math…but even with my quick calculations, that means that the taxpayer is giving $7,000 per person? Tell me again. What the hell does this company make here? I saw a story some years back where people were hired and just sitting around so that the company bean counters could say that they were “employed” but only sat around playing games on their computers or cell phones.
Foxconn had already had an established and widely known record for reneging on splashy plans at sites across the U.S., but then Gov. Walker inked the cocktail napkin agreement anyway.
Walker tried so hard to jump onto the Grift Train at the expense of the state.
I wonder how many cocktails had already been imbibed before the cocktail napkin deal was struck?
Foxconn Also bought up quite a few office buildings. The old IBM building in downtown Milwaukee was one of them. They said they would be their “innovation centers” here, and in Eau Claire, Green Bay, Madison, Milwaukee, and Racine. Sounds more like a lang grab. And, selling us property (and farms) to a foreign country like China, (or as Trump likes to call it ‘Chiii Nah’) was always against Republican talking points in elections in other parts of the US. Why was this fashionable to do back in 2017?