Foxconn Is Reconsidering Plan for Manufacturing in Wisconsin

The agreement with the Wisconsin Economic Development Corporation “does protect the state to some extent if Foxconn falls short of promised job creation,” said Timothy Bartik, an economist for the Upjohn Institute in Kalamazoo, Mich. “But the capital investment tax credit, in particular, does not seem to fully adjust for this if Foxconn ends up doing a much less job-intensive and more capital-intensive project.” This year, the company is eligible for a jobs-related credit if it creates at least 520 full-time jobs, and an investment credit that can be scaled back if job creation falls short. Mr. Bartik said Foxconn had been vague about whether the promise of 13,000 jobs refers solely to those created by the company or includes related jobs among retailers or along the supply chain.

Source: www.nytimes.com