From WisPolitics.com/WisBusiness.com …
— Under the recently signed contract between WEDC and Eli Lilly and Company, the pharmaceutical business is eligible for up to $18 million in tax credits for job creation and $82 million for capital investment.
The contract, which was signed Tuesday, includes more detail about the Enterprise Zone tax credit agreement between the Indiana-based company and the Wisconsin Economic Development Corp.
Gov. Tony Evers and WEDC rolled out the incentives for the company Aug. 5, announcing the state is providing up to $100 million in performance-based tax credits to support the company’s planned $4 billion investment in Wisconsin. Those incentives are contingent on Eli Lilly and Company creating at least 700 jobs and making at least $2.2 billion in capital investment.
The allocation period for these tax credits runs through the end of 2036, the contract shows.
The job creation tax credits can only be earned for full-time employees in the defined Enterprise Zone who earn an annual wage of at least $30,000, according to the contract. They’re calculated at a rate of 7% of the wages between that amount and $100,000 paid to those employees, determined more specifically by a calculation laid out in the agreement.
Meanwhile, the capital investment tax credits will be calculated at a rate of 10% of the cost of the company’s “significant capital expenditures” in the Enterprise Zone.
Along with the job creation goals laid out in the agreement, it also includes a job retention goal of 117 jobs.
The contract defines a full-time job as a nonseasonal job that pays more than $22,620 — equal to 150% of the federal minimum wage — and which offers retirement, health and other benefits.
It also lays out the process for what happens if the company defaults on the agreement and fails to address the issue during a “cure period” specified in the contract.
In the event of default, which can include the company ceasing operations in the Enterprise Zone and not resuming within 12 months as well as other scenarios, the company initially has 30 days to address the default. WEDC has discretion to extend that period if the company is working on fixing the problem, but can’t extend the cure period more than 90 days.
Once WEDC has decided to end the agreement following a failure to address the default, the state Department of Revenue can recover up to 100% of the tax credits verified by WEDC and claimed under the contract, as well as related court costs and other fees.
When asked for comment on the terms of the contract, a spokesperson for Eli Lilly and Company said “we are confident in the progress we anticipate making at our Kenosha manufacturing site both with our investment and our hiring.”
See more here.
— The Wisconsin Hospital Association is touting the latest national hospital quality ratings, noting the state is No. 6 in the country for the percentage of hospitals getting four or five stars.
The group today highlighted the Overall Hospital Quality Star Ratings from the Centers for Medicare & Medicaid Services, which evaluates hospitals based on safety of care, patient experience, timely and effective care, mortality and readmissions.
WHA says 65% of hospitals in the state got four or five stars in the CMS ratings, well above the national average of 36%. Along with being the sixth-highest share of four- or five-star hospitals of any state, it’s also the highest percentage for states with at least 50 hospitals, according to the group.
WHA President and CEO Kyle O’Brien says the ratings “reflect a statewide commitment to excellence” that benefits every patient.
“Wisconsin’s hospitals have a longstanding track record of high-quality healthcare that consistently delivers some of the best outcomes in the nation,” he said in a statement. “As a critical community need, high-quality health care is important for all types of employers seeking to attract and retain talent in Wisconsin.”
See the release below.
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