Foxconn qualifies for another round of tax credits, bringing total subsidies past $52M

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.

In late October, the Wisconsin Economic Development Corp. notified Foxconn that it would receive the latest round of tax credits. In 2023, the company employed 1,114 people and made nearly $24.6 million in capital investment, according to the WEDC 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.

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.

But even with the new contract, Kelly Gallaher, a Mount Pleasant resident and longtime Foxconn critic, said she’s concerned that Foxconn could pack its bags and leave Racine County after receiving its $80 million in state tax credits.

“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.