Eli Lilly and Co. could get $100 million in state tax credits

Pharmaceutical company Eli Lilly and Co. could get $100 million in tax credits from the Wisconsin Economic Development Corp. for its expansion project in Kenosha County.

In 2024, Lilly announced it will invest $3 billion to expand its facility in Pleasant Prairie and create 750 jobs, including 2,000 construction jobs, west of Interstate 94. So far, the company has spent $4 billion acquiring, expanding and buying land in Wisconsin. The facility on 128th Street was previously built and owned by Nexus Pharmaceuticals.

Gov. Tony Evers on Tuesday announced the WEDC will support Lilly’s expansion in the state with enterprise zone tax credits, which are based on job creation and capital investment goals.

Before those credits are granted, Lilly will have to hit a target of 200 jobs and $2.2 billion investment, multiple outlets reported.

“I’m proud of my administration’s efforts to invest in new economic opportunities, expansions, and developments in southeastern Wisconsin in recent years with leading brands like Eli Lilly and Company moving and growing their operations here,” Evers said in a statement. “Coupled with our state’s designation as a U.S. Regional Tech Hub, history of game-changing innovations, and world-class manufacturing, Wisconsin is proud to partner with Lilly as they make this historic investment in our communities.”

Lilly is expanding its Pleasant Prairie facility to support its manufacturing network and meet growing demand for injectable obesity and diabetes medication, officials said.

This is the largest award granted under the state’s Enterprise Zone program so far. The second-largest award was given to Milwaukee Tool, which received a $70.5 million total state investment, including $22.5 million in WEDC tax credits, to build its headquarters in downtown Milwaukee.

“We are grateful for the partnership and leadership shown by Gov. Evers, WEDC, state, county and local officials, as well as other stakeholders in supporting this project,” said Edgardo Hernandez, executive vice president and president of Lilly manufacturing operations, in a statement. “Together, we’re advancing innovative manufacturing capabilities, building capacity for the medicines of tomorrow, creating high-quality jobs and ensuring patients here and around the world have access to life-changing treatments. We look forward to contributing to the region’s strong legacy of innovation and economic vitality for years to come.”

In 2024, the Evers administration and WEDC started working on expansion with the company and local leaders, officials said. WEDC also helped Nexus Pharmaceuticals move its manufacturing operations from Illinois to Wisconsin in 2019, officials added.

“This project represents not just a major step forward for the company and its manufacturing capacity, but for the future of our state as a global leader in the field of biohealth and pharmaceuticals,” said Missy Hughes, secretary and CEO of WEDC, in a statement.

In March, village officials approved the final site and operational plans for the addition to Eli Lilly’s facility, which is in the Prairie Highlands Corporate Park. Plans call for more than a 54,000-square-foot addition with three stories of office and manufacturing space, new warehouse floor space and dock doors. Lilly wants to wrap up the project by March 2026, a village staff report showed.

In 2024, Evers and U.S. Sen. Tammy Baldwin (D-Wis.) announced the state was selected as a U.S. Regional Tech Hub by the U.S. Economic Development Administration, the governor’s office said. The designation is expected to create 30,000 jobs in the personalized medicine sector and more than 111,000 indirect jobs in the next 10 years, as well as $9 billion in economic development in the state, officials added.

Since 2020, Lilly has spent $23 billion building and acquiring manufacturing sites worldwide, company officials noted.