MADISON, WI (MetroSouce-WSAU) - A state audit shows that there’s a possibility that Wisconsin taxpayers could pay Foxconn for work done outside of the state.
The Legislature's Audit Bureau report released Wednesday is recommending changes to procedures by the Wisconsin Economic Development Corporation to avoid awarding tax credits to Foxconn Technology Group for work done outside the state. The bureau says the agency's procedures don't comply with the state's contract with Foxconn and state law.
Audit committee co-chair Sen. Rob Cowles told USA TODAY-Wisconsin that “the audit uncovered a discrepancy that had the potential to cost Wisconsin taxpayers money.”
Foxconn begins earning tax credits from the WEDC starting next year for jobs they create from their new manufacturing campus in Racine County. They need to create at least 13,000 to qualify. The salaries need to average at least $59,900 per year.
A loophole in the contract could allow Foxconn to count workers who live out-of-state towards the quota, or the get credit for workers hired in other states. It means Foxconn could employ fewer people in-state, but pay them a higher average salary, and still qualify for tax breaks in Wisconsin.
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