Bill > A01090

This bill establishes an interstate compact agreement designed to phase out corporate giveaways by creating a multi-state mechanism to prevent states from offering company-specific tax incentives or grants to lure businesses from other member states. The compact defines "corporate giveaways" as specific financial disbursements or tax breaks targeted at individual companies, and aims to address what it describes as a "prisoners' dilemma" where states compete against each other by offering increasingly generous incentives to attract businesses. Key provisions include prohibiting member states from providing company-specific tax incentives or grants to entities located in other member states as an inducement to relocate, with some important exclusions such as workforce development grants and incentives for businesses within a state's own borders. The bill also establishes a national board of gubernatorial appointees who will meet annually to suggest improvements to the agreement, collect testimony from various stakeholders, and publish recommended revisions. Enforcement would be handled by each state's chief law enforcement officer, and taxpaying residents would have legal standing to require enforcement. States can join the compact voluntarily and can withdraw with six months' notice, and the agreement includes severability provisions to ensure that if parts of the compact are found invalid, the remaining sections would still stand.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A1090