(Ashley Carman – The Verge)
Apple supplier Foxconn announced plans to open a new production facility for LCD displays in Wisconsin yesterday. The company and the state of Wisconsin pointed out that the facility’s construction would support 10,000 jobs in each of the next four years, as well as 6,000 indirect jobs. Foxconn would eventually employ 13,000 people with an average salary of $54,000.
Yesterday, we didn’t know how exactly Wisconsin Governor Scott Walker convinced the world’s largest contract electronics manufacturer to set down roots in the state. Today, we’re getting a better idea. In a phrase: lots and lots of tax breaks.
Wisconsin will offer up to $3 billion in tax breaks to the Taiwanese company over 15 years. Up to $1.5 billion of that tax credit is for job creation; $1.35 billion is for capital investment; and up to $150 million is for the sales and use tax exemption (or no sales tax for construction materials). Wisconsin says these incentives will cost between $200 million and $250 million a year. Once fully staffed, the government estimates that Foxconn will spend $700 million a year. Still, the facility won’t be operational until 2020, if everything stays on track. Click here to read more.