Foxconn CEO Liable For Repaying 25% of Cash Credits if Wisconsin Plant Goes Sour
CEO Terry Gou personally would be liable for repaying 25 percent of the cash Foxconn collects in state incentive tax credits from a company he controls in the Cayman Islands if Foxconn defaults on its agreement to build a plant…
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and hire a big workforce, with the electronics maker paying the rest, said the signed contract. A copy was furnished to us by the Wisconsin Economic Development Corp. (WEDC). Foxconn would collect up to a maximum of $2.85 billion in cash credits, equaling 15 percent of what it spends on construction and 17 percent of its payroll costs. Gou, Gov. Scott Walker (R) and WEDC CEO Mark Hogan signed the contract Friday at a ceremony in Racine. "The ‘pay as you go’ nature” of the agreement “guarantees” Foxconn gets paid cash credits only after “jobs are created,” said the accord. A news release from Walker's office called it "pay as you grow." The contract sees Foxconn reaching full employment in 2022, two years later than forecast by the Wisconsin Department of Administration (see 1708040056). WEDC can inspect “operations and documentation" with 48 hours’ “advance written notice.”