Wisconsin tells Foxconn no tax credits without new deal

MADISON, Wis. (AP) — Wisconsin told Foxconn Technology Group on Monday that it won't qualify for billions of dollars in state tax credits unless it strikes a new deal for a scaled-back factory complex.

State officials have told Foxconn since last year that it would not qualify for the tax credits without revisions to its 2017 contract because the scope of the envisioned factory has been reduced. President Donald Trump heralded the original deal as a sign of a revitalized American manufacturing economy, calling the envisioned plant “transformational” and the “eighth wonder of the world.”

The deal with Foxconn, the world's largest electronics manufacturer, was announced by Trump at a White House ceremony and he traveled to Wisconsin in 2018 for the groundbreaking.

Foxconn signed a contract with Wisconsin under then-Gov. Scott Walker in 2017 to earn nearly $4 billion in state and local tax incentives for a $10 billion display screen manufacturing campus and plant that would employ up to 13,000 people. But Walker, a Republican, lost in 2018 to Democrat Tony Evers, who ran as a critic of the project.

After the deal was signed, Foxconn said it was downsizing the factory to what is known as a Generation 6 plant rather than a Generation 10.5 plant. The facility envisioned now would make smaller thin-film transistor liquid crystal display screens for cellphones and other devices, rather than the larger screens that were first proposed.

The letter sent Monday from Wisconsin Economic Development Corp. Secretary Melissa Hughes confirmed that from the state's perspective, Foxconn's new factory can't get state tax credits unless the original contract is changed.

Foxconn spokeswoman Myranda Tanck had no immediate comment.

Hughes said in the letter to Jay Lee, the vice...