Wisconsin offered at least $3 billion in subsidies to iPhone supplier Foxconn to entice the Taiwanese company to build a flat panel screen plant, the Milwaukee Journal Sentinel reports.
Foxconn, which makes screens for Apple products, plans to invest $10 billion in the factory, which has the potential to create 13,000 jobs in House Speaker Paul Ryan’s district.
The company must meet job creation and investment targets to be eligible for the subsidies. The package includes a potential $1.5 billion in state income tax credits for creating jobs, up to $1.35 billion in credits for the investing capital, and a potential $150 million in sales tax exemptions on construction materials, according to the Journal Sentinel.
If Foxconn receives the full subsidy amount of $3 billion for 13,000 jobs, the deal would cost around $231,000 per job created.
President Donald Trump announced Foxconn’s investment Wednesday at a White House event, and officials will undertake a formal signing of a memorandum of understanding Thursday in Milwaukee. The company will invest $10 billion for the plant and will create at least 3,000 jobs “with the potential for up to 13,000 in very near future,” Trump said. (RELATED: iPhone Manufacturer FoxConn To Invest Billions In Wisconsin)
The arrival of the plant “represents the return of electronic manufacturing to the United States,” Trump said.
Thank you Foxconn, for investing $10 BILLION DOLLARS with the potential for up to 13K new jobs in Wisconsin! MadeInTheUSA pic.twitter.com/jJghVeb63s
— Donald J. Trump (@realDonaldTrump) July 27, 2017
The plant will manufacture liquid crystal displays used in computer monitors, cars and televisions. “America does not have a single LCD plant to produce a complicated system. We are going to change that,” Terry Gou, chairman of Foxconn, said.
“This is an exciting day for our community, and we look forward to working further with Foxconn as we begin a new era of manufacturing here in Wisconsin,” Ryan said in his remarks at the White House event.
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