Foxconn package would cost $150M in lost sales taxes

Site staff by Site Contributor

New fiscal estimates show Gov. Scott Walker’s incentives package for electronics giant Foxconn would cost the state and local governments nearly $150 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 fiscal estimates from state agencies, provisions blocking sales taxes on plant construction materials and equipment would cost the state about $139 million by the time the plant is finished. 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.

An earlier version of the Associated Press story inaccurately listed the lost sales taxes as $50 million.

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