FOX VALLEY, Wis. (WBAY) -- The deal between Kimberly-Clark and the state means hundreds of jobs are now safe. But what does that mean in terms of money?
Kimberly-Clark came to an agreement with the Wisconsin Economic Development Corporation, or WEDC, through a set of tax incentives.
“$28 million over five years, so plus or minus five plus million dollars a year they'll receive, if they meet their benchmarks,” says Peter Thillman, Vice President of Economic Development at Fox Cities Regional Partnership.
That means Kimberly-Clark will receive the $28 million in tax incentives through something called Enterprise Zones.
“Enterprise Zones are basically tax credit programs. So that if they make certain job investments and capital investments in their facilities, the state will give them tax credits that are refundable,” Thillman explains.
The company has to meet a set of requirements to receive the $28 million, over half of a decade.
Parameters include keeping at least 388 yearly jobs, and investing up to $200 million in the Fox Crossing facility over the next five years.
That’s something experts say is a good thing.
“If you're going to have $200 million of construction, yeah! It's going to boost the local economy a little bit,” Thillman explains.
But the Fox Valley is no stranger to these kind of tax incentives.
“Mercury Marine is the biggest example of a similar situation, where it's between Oklahoma and Fond du Lac. And the state, local, and company worked together to make it be Fond du Lac,” Thillman tells Action 2 News.
Back in 2009, Mercury Marine stayed put in Fond du Lac, after it received millions of dollars in taxpayer funded incentives.
Experts are hoping for the same result in Kimberly-Clark.
“I think it'll make people have a better Christmas knowing that they, from certainty going forward, that they have those jobs,” Thillman says.