Basically, the bill allows for the establishment of a new type of enterprize zone called an "Electronics and Information Technology Manufacturing Zone", and allows for up to $2.85 billion in tax credits that are generally determined as follows.
1. Determine the zone payroll for the taxable year for full-time employees whose annual wages are greater than the amount determined by multiplying 2,080The good part about that is that "zone payroll" that gets the 17% write-off is limited to $100,000 per employee. The bad part is that I see nothing in the language that says the credits are based on a "base year" of jobs with this Foxconn development. I don't see what that base year is, and it may well be 0, since nothing is there right now. If true, there would just has to be salaries of full-time employees and capital expenses (which is building construction, machines, etc) of some type to have things written off. And with WEDC being the ones to oversee these numbers, we have the right to be skeptical, given WEDC's awful history of tracking these things in the recent past.
by 150 percent of the federal minimum wage in a tier I county or municipality or greater than $30,000 in a tier II county or municipality.
2. Multiply the amount determined under subd. 1. by 17 percent.
(bm) Filing supplemental claims. In addition to claiming the credit under par. (b), and subject to the limitations under this subsection and s. 238.396, a claimant may claim as a credit against the tax imposed under s. 71.02 or 71.08 an amount equal to 15 percent of the claimant's significant capital expenditures in the zone in the taxable year, as determined under s. 238.396 (3m).
Also worth noting, since corporate taxes on manufacturers are already near zero due to The Big Giveaway known as the Manufacturers and Agriculture Credit, most of this will come in the form of STRAIGHT CASH to Foxconn and others who build in the area. Not a bad deal, to be paid off by the state for hiring people and building stuff.
This part is also intriguing to me, as described by the Legislative Reference Bureau.
This bill authorizes the Department of Administration to make grants to local governmental units for costs associated with development in an electronics and information technology manufacturing zone, including costs related toWhich is a good thing as a matter of policy, because it lessens the chances of local taxpayers being stuck with a huge property tax bill near the Foxconn facility. But it's not such a good thing for state taxpayers, since this is additional spending that the state would have to come up with, and with these Foxconn writeoffs.
infrastructure and public safety. DOA may require a local governmental unit to match a grant in whole or in part.
On the flip side, the Foxconn bill allows Tax Incremental Districts (TIDs) to be extended from 20 years to 30 years under this law, meaning that local communities may be giving the property tax-free till 2048 , if the added property value doesn't match what is exempted in the TID. Which means that every other taxpayer in that community would have to pay higher property taxes to make up the difference. And we haven't seen what kind of subsidy Foxconn will get from the community they set up in...which we will find out once they actually agree on a site.
And the two bigger surprises that came out with the release of the Foxconn bill over the weekend were as follows.
Biggest news in special session bill: $252M in borrowing to complete I-94 N-S, key corridor for Foxconn plant in Racine/Kenosha counties. https://t.co/4jeltziLXB— Jason Stein (@jasonmdstein) July 28, 2017
The LRB indicates that this is contingent on a federal award, which would go along with Gov Walker's desire for a bailout from DC on highway funds, which was revealed earlier this month. But even if the $252 million was able to be spent on I-94 in Racine and/or Kenosha County, the bil says it would be borrowed from the General Fund, which means that there will be even fewer resources available in future years for schools, local aids, health care, and other items that the General Fund pays for.
And the most heinous parts of the bill (outside of the massive amount of corporate welfare) is this section.
The Foxconn project would be exempt from having to create a state environmental impact statement. https://t.co/79PN0G4T3g— Patrick Marley (@patrickdmarley) July 28, 2017
The Foxconn legislation would allow the company to discharge dredged material and fill into wetlands without a state permit. https://t.co/hRefFvmXTu— Patrick Marley (@patrickdmarley) July 28, 2017
The Foxconn incentive package would allow the company to change the course of streams without getting state permits. https://t.co/E3bQUwSoVO— Patrick Marley (@patrickdmarley) July 28, 2017
And if you think the state's Department of Justice is going to make sure waterways remain clean and that others aren't screwed over by pollution on and around the Foxconn site, you shouldn't hope too hard. Why do I say that? Take a look at this tweet from the partisan GOP hack that "serves" as our Attorney General.
Workers succeed and the economy thrives when we value individual freedom and opportunity above over-regulation and big government. pic.twitter.com/AgxqmbC0D9— Brad D. Schimel (@BradSchimel) July 27, 2017
Nothing but corporate propaganda and GOP talking points. If that won't get you donating to Josh Kaul to get the crooked Schimel out of office next year, nothing will.
It still seems like a lot of details need to be filled in with this Fox-con, and it looks like a double-edged sword. We either see the claims of UP TO 13,000 jobs fall far short of that number, or we spend a helluva lot of money to pay off companies that add a lot of jobs and build facilities. Or worst, it could be both. Either way, this thing deserves a lot more discussion and details than I bet we will find out in the special session that is set up to jam this Fox-con through.
More to come on this one as information becomes available....and I have the time and space to go into other parts of it.