MMAC today released its analysis of the projected impact to Wisconsin’s gross domestic product (GDP) from the incentive package tied to Foxconn’s capital investment and job creation. GDP is the best measure of the value added to the economy. The analysis is based on the state’s tax credit agreement executed with Foxconn on November 10, 2017.
The MMAC analysis recognizes that the incentive package is based on a “pay as you grow” model. Only when capital is expended and payroll is committed does Foxconn qualify for the incentives. The snapshot of economic impact applies only to the 15-year window of the state’s incentive package. “Much like priming a pump, the flow from Foxconn’s spending beyond the 15-year incentive window would significantly increase the state’s return. We believe this GDP analysis, while conservative, provides the fullest picture of the state’s return on investment,” stated Sheehy. This deal is one of largest corporate expansion projects in U.S. history.
Sheehy continued, “We should not lose sight that Foxconn’s investment in manufacturing high-resolution panels, combined with a faster telecommunications infrastructure, puts us in play in the digital economy. Bottom line, if you live or work in Wisconsin, the return on the Foxconn investment is real.”
MMAC is the region’s largest business organization, with more than 2,000-member companies supporting more than 300,000 jobs. MMAC is dedicated to a globally competitive region that drives high value jobs to support a vibrant quality of life for all.