IMPLEMENTATION LEVEL

Subnational

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 18 Sep 2017 | Removal date: open ended
Still in force

Tax or social insurance relief

On September 18, 2017 Governor Scott Walker of Wisconsin signed into law a bill (Special Session Assembly Bill 1) known as the Wisconn Valley Special Session Bill. The bill authorizes the Wisconsin Economic Development Corporation (WEDC) to create not more than one electronics and information technology manufacturing zone, and specifies tat te total amount of all tax credits WEDC may certify is $2,850,000,000. It also creates a sales and use tax exemption for the sale of building materials, supplies, and equipment used to construct facilities located in an electronics and information technology manufacturing zone, and creates special provisions that apply to certain tax incremental financing districts (TIDs) for local government units.

The purpose of the bill is to incentivize and facilitate a project first announced on July 26, 2017 when President Donald Trump announced that Foxconn Technology Group plans to build a new factory to produce LCD display monitors in Wisconsin. The factory will open in the home district of Representative Paul Ryan (Republican-Wisconsin), the Speaker of the U.S. House of Representatives, and was the object of lobbying on the part of the White House’s Office of Innovation (led by Mr. Jared Kushner).

In a memorandum of understanding signed that same day by the governor of Wisconsin and the president of Foxconn, the state agreed to “[i]Immediately pursue legislation in the Wisconsin Legislature” to include inter alia these elements:

  • Providing up to $US3 billion in a state economic incentive package which will include a construction sales tax exemption and refundable Enterprise Zone credits for capital invested and jobs created (subject to satisfactory review of financial information and required approvals);
  • Modifying eligible advances percentages to 17% and 15% against qualified Wages and Capital Expenditures, respectively;
  • Extending the term of the Zone for up to 15 years;
  • Expanding Tax Incremental Financing ("TIF") limits (e.g. 12% assessed cap, expanding the life of the TIF, etc.) and flexibilities, and allowing the affected municipalities to use TIF in innovative ways to facilitate the development through reimbursements for infrastructure directly related to Flying Eagle and company expenditures incurred to build F AB 818;
  • Expediting permitting reviews in various Wisconsin governmental agencies, wherever possible and within the public interest, to align with the timeline needed to implement the project; and
  • Other changes deemed necessary by both parties to fully implement the project.

The state also pledged to “[w]ork with local and regional economic development authorities to enter into land sale contracts for a minimum of 1,000 acres,” and to “[s]upport the Company in engaging federal (e.g. Wisconsin delegation, administrative agencies, etc.), state and local government authorities to facilitate the planning, construction, start-up, and on-going operations of F AB 818, in order to reduce project and operational costs and time to market, as well as to support the Company in its workforce and business development.”

 

AFFECTED COUNTRIES

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TABLE
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AFFECTED SECTORS AND PRODUCTS

469 Other electrical equipment & parts
8531 Electric sound or visual signalling apparatus (for example, bells, sirens, indicator panels, burglar or fire alarms), other than those of heading 85.12 or 85.30.
853120 Indicator panels incorporating liquid crystal devices (LCD) or light emitting diodes (LED)
483 Optical instruments & photographic equipment; parts thereof
9013 Liquid crystal devices not constituting articles provided for more specifically in other headings; lasers, other than laser diodes; other optical appliances and instruments, not specified or included elsewhere in this Chapter.
901380 Other devices, appliances and instruments
901390 Parts and accessories

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