Foxconn does not currently qualify for state tax credits, because the scope of its project in Racine County has changed, Department of Administration Secretary Joel Brennan said.

In an interview aired Sunday on “UpFront,” Brennan said Foxconn has “to come back to the table” to talk about how to bring its contract with the state into alignment with its project. “UpFront” is produced in partnership with

“As the project evolves, the state has encouraged Foxconn on any number of occasions, in lots of ways, to come back to the table to talk to us about ‘how do we bring the project into alignment with the contract?'” Brennan said.

The Walker administration negotiated a contract with the Taiwanese tech giant that would give the company more than $3 billion in tax incentives, if Foxconn met a threshold for job creation and investment at the huge plant it is building in Mount Pleasant.

But the project has gone from a large Gen 10.5 factory to a smaller Gen 6 factory, Brennan said, and the contract and incentive package are specific to the larger project.

WISN-TV obtained correspondence between the state and Foxconn that showed a company official questioning whether the Evers administration welcomes business investment in Wisconsin.

“Distractions like these leave job creators and job seekers wondering if doing business in our great state is welcomed by Governor Evers’ administration,” wrote Foxconn executive Alan Yeung in a Nov. 18 letter to Brennan.

Yeung also wrote that the company “shall be evaluating all available options relating to the WEDC contract.”

Brennan said the Evers administration and the Wisconsin Economic Development Corp. continue to talk to Foxconn on a “weekly, sometimes daily basis.”

“I’m confident that the state has articulated, and the Evers administration has laid out for Foxconn, what the path is to ensure that they can have the best chance for success,” Brennan said.

Late Friday, Foxconn released a statement that said it “is in compliance with the terms of the agreement with WEDC and we will continue to work with the State in good faith.”

“Foxconn is hopeful that we will arrive at a mutually acceptable resolution so we can continue with a project that is important to our company and to the development of technology in Wisconsin,” the statement said.

See more from the program:

Print Friendly, PDF & Email