SB 1322 Summary

• Establishes an interstate compact to abolish company-specific tax subsidies and grants offered to individual corporations by member states.

• Defines prohibited subsidies as company-specific tax incentives (changes in general tax rates not available to similarly situated companies) and company-specific grants (disbursements of funds, property, or deferred tax liability to particular companies), while exempting workforce development training grants.

• Creates a board composed of five representatives from each member state (governor's office, majority/minority leaders of each chamber) that convenes annually to collect testimony and suggest revisions to the compact.

• Designates the Arizona Department of Revenue as the state agency responsible for administration and enforcement of the compact.

• Applies only prospectively; existing company-specific grants are grandfathered in, but any modifications to existing agreements are treated as new prohibited grants.