On a per-job basis, it appears Wisconsin paid more in incentives for its economic development prize Foxconn Technology Group than New York’s and Virginia’s incentives for Amazon.com Inc., but those involved in Wisconsin’s Foxconn deal say the state will get more bang for taxpayers’ bucks.
Wisconsin’s state financial incentives to Foxconn will reach $3 billion if the company spends $10 billion on its Racine County plant and equipment and hires 13,000 employees at an average wage of $53,000-plus.
Initial reports on the Amazon HQ2 incentive packages showed $1.5 billion in incentives from New York and $573 million for northern Virginia. The company plans to hire 25,000 employees at each location with an average annual salary of $150,000.
However, the total bundle for New York is $2.8 billion including both state funds and tax breaks from the city, according to the Washington Post. And the Virginia package reaches $1.85 billion when including promises of state investments in higher education and improving the transportation system, according to the Richmond Times-Dispatch.
Tim Sheehy, president of the Metropolitan Milwaukee Association of Commerce (MMAC), points out that $1.35 billion of Wisconsin’s incentive package specifically ties to jobs Foxconn creates, while the rest is for construction.
Read more in the Milwaukee Business Journal.