Foxconn Analysis: Taxpayers Won't Break Even For 25 Years

WISCONSIN — It would take state taxpayers a minimum of 25 years to break even on a proposed $3 billion incentive package that is designed to lure electronics manufacturer Foxconn to Wisconsin.

According to an analysis by the nonpartisan Wisconsin Legislative Fiscal Bureau, the cost of the tax credits would exceed potential increased tax revenues by $1.04 billion at the end of fiscal year 2032-33.

After that year, payments to Foxconn would end and increased tax collections are estimated at $115 million annually. Their analysis, which was released Tuesday, implies that the break-even point would come during the 2042-43 fiscal year.

But it might not.

The Legislative Fiscal Bureau in its analysis said that any cash-flow analysis that covers a period of nearly 30 years must be considered highly speculative, especially for a manufacturing facility and equipment that may have a limited useful life.

Related Reading:

Legislative Fiscal Bureau Analysis Document

Technological advances and changes in Foxconn's market share, operating procedures, or product mix could significantly affect employment and wages at the proposed facility over time.

Also, state law changes could affect the estimated amount of tax collections received from the additional economic activity, and any future state assistance that may be provided to Foxconn would affect the analysis.

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