Foxconn’s plan to create thousands of jobs in Wisconsin is moving right along.
The $3 billion package of incentives that Wisconsin Gov. Scott Walker promised to the company was approved by the state Assembly last week. It’s now under consideration by the Senate Joint Finance Committee, which will hold a hearing on Tuesday.
CEO Terry Gou announced in July that Foxconn will invest $10 billion to build a new manufacturing plant in House Speaker Paul Ryan’s district.
The facility, which will produce LCD panels, is expected to create between 3,000 and 13,000 new jobs and should be up and running by 2020.
But the dollar value of Walker’s incentives package has caused some controversy in Wisconsin.
If the state legislature gives its okay, the annual payout would be between $200 million and $250 million, according to the state’s main development agency.
That translates to between $15,000 and $19,000 state dollars per job per year, if 13,000 jobs are actually created. That’s six times the typical cost per job you’d see in a public incentive package for a manufacturer, according to Timothy Bartik, an economist at the W.E. Upjohn Institute for Employment Research.
And Wisconsin will have to wait about 25 years to break even on the Foxconn project, according to a report from the state’s Legislative Fiscal Bureau, a nonpartisan agency that provides the legislature with financial analysis.
A notable opponent of the deal is Americans for Prosperity, the political organizing arm of Republican billionaires Charles and David Koch.
“As free market activists who staunchly oppose government tax incentives, we cannot support the expensive refundable tax credits in this package,” the group said in a statement earlier this month.
Still, the Senate president and majority leader both expect the measure to pass and be sent to the governor in September.
Foxconn already has facilities in Virginia and Indiana that employ fewer than 1,500 workers altogether, according to its website.
The firm has talked about shoring up its U.S. manufacturing capacity for some time but has yet to substantially deliver. In 2013, for example, Foxconn announced plans to build a $30 million plant in Pennsylvania. It still hasn’t been built.