>> In our first look tonight, we're learning more about just
how and when Foxconn can earn their $3 billion from taxpayers
for building a manufacturing plant in southeastern Wisconsin.
>> The Assembly held a public hearing Thursday on a bill that
creates a manufacturing zone for Foxconn.
Six of Governor Walker's cabinet secretaries took questions from
lawmakers explaining how the tax credits work and what
protections are in place for workers and taxpayers.
Under this bill they won't have to pay sales tax on materials
and supplies, saving them up to $150 million.
Foxconn will receive cash pay-outs from the state for 15%
of their capital expenditures, up to $1.35 billion
over 7 years.
Foxconn is expected to start with 3,000 workers
and could employ up to 13,000.
According to testimony the entry level wages should be
$20 an hour plus benefits.
Wisconsin taxpayers will subsidize those wages.
Foxconn will receive cash pay-outs from the state equal
to 17% of payroll for every job that pays
between $30, 000 and $100,000.
That will earn Foxconn $1.5 billion over 15 years.
Scott Neitzel is the secretary of the Department of
Administration and helped negotiate the deal.
He says another 20,000 jobs will be created in the supply chain
to support Foxconn and you have to look at the big picture.
>> Here again, you have to look at it very broadly.
The potential for the positive economic impacts go well out
for years and years and years.
In the short term as these incentives pay out, yes,
there will be an effect on the state budget in the short-term.
But over the long haul, this is a net win for Wisconsin
for the long-term.