Bill > S2361

This bill prohibits "inverted domestic corporations," which are defined as companies incorporated in the United States that reincorporate in a foreign country or become a subsidiary of a foreign-incorporated company primarily to avoid U.S. taxes, from receiving state contracts or development subsidies. Companies seeking state contracts will be required to certify they are not inverted domestic corporations, and the State Treasurer will be responsible for making this determination, considering factors like reduced tax liability, location of business operations and assets, and ownership by U.S. shareholders. Corporations already barred from federal contracts due to being deemed inverted domestic corporations will automatically be considered so under this bill, and the State Treasurer will establish rules to implement these provisions, with exceptions if federal law is violated or federal funding is jeopardized.