MADISON, Wis. (AP) — The Latest on Wisconsin Gov. Scott Walker's incentives bill for electronics giant Foxconn (all times local):
A new analysis shows Wisconsin may not break even on incentives to lure Taiwanese electronics giant Foxconn to the state for at least 25 years.
Gov. Scott Walker has introduced a bill that would give Foxconn up to $3 billion in incentives to build a plant in southeastern Wisconsin. The nonpartisan Legislative Fiscal Bureau released a review of the incentives on Tuesday.
The analysis examined scenarios where the state would reach a break-even point between incentives given and taxes collected from Foxconn employees and jobs indirectly related to the plant. The analysis said the earliest the state would break even would be the 2042-43 fiscal year.
The analysis said if 10 percent of the plant's jobs go to Illinois residents, the break-even point would come two years later. If half of the jobs associated with the plant are filled with non-Wisconsin residents the break-even point could be delayed well beyond that.
The analysis warns, however, that any cash-flow predictions spanning 30 years must be considered highly speculative.
Fiscal estimates show Gov. Scott Walker's incentives package for Taiwanese electronics giant Foxconn would cost the state and local governments nearly $50 million in lost sales taxes.
Walker has introduced a bill that would give Foxconn up to $3 billion in incentives to build a plant in southeastern Wisconsin. According to state agencies' fiscal estimates, provisions blocking sales taxes on construction materials and equipment would cost the state about $139 million. Local governments would lose about $10.7 million.
Payroll and capital expenditure tax credits would cost the state about $2.85 billion.
The bill also calls for borrowing $252.4 million to rebuild Interstate 94. The interest on that borrowing from 2019 through 2042 would total $408.3 million.
Foxconn has said the $10 billion Wisconsin plant could bring up to 13,000 jobs.