Bill > A3624

This bill prohibits companies classified as "inverted domestic corporations" from receiving state contracts or development subsidies, defining such a corporation as one determined by the Internal Revenue Service to be inverted under federal tax law (specifically, 26 U.S.C. s.7874). This means companies that have moved their tax headquarters overseas while maintaining significant operations in the U.S. will be ineligible for these state benefits. The bill also requires corporations seeking state contracts to certify they are not inverted domestic corporations and amends existing law regarding development subsidies to prevent their award to inverted domestic corporations, requiring recipients to repay subsidies if they become inverted during the subsidy period. The provisions will not apply if they conflict with federal law or jeopardize federal funding, and the State Treasurer is tasked with creating necessary regulations.