Gov. Scott Walker and Foxconn CEO Terry Gou are scheduled today to sign the contract to bring the Taiwanese tech manufacturer to Wisconsin. Joined by U.S. House Speaker Paul Ryan (R-Janesville), the two will sign the document at SC Johnson in Racine. The Wisconsin Economic Development Corporation (WEDC) board approved the agency’s work on the contract on Wednesday.
The contract includes requirements that:
- Foxconn create jobs and invest capital before it is eligible for tax credits via a “pay as you grow” system.
- Foxconn hire an independent CPA to verify the company’s job creation and capital investment reports to WEDC.
- Foxconn make $9 billion in capital investments to earn the full amount of tax credits.
- Foxconn meet an annual job-creation threshold to receive tax credits.
- Foxconn pay an average annual salary of $53,875 to qualify for tax credits.
- Foxconn maintain the number of jobs it creates through 2032.
- Foxconn is responsible for 75 percent of clawback payments if it fails to uphold certain aspects of the contract. CEO Terry Gau is personally responsible for the other 25 percent.
The legislature signed off on Foxconn legislation in September.