SB1375 Summary

• Creates the Phase Out Corporate Giveaways Interstate Compact allowing any state and the District of Columbia to prohibit offering company-specific tax incentives or grants to entities relocating existing facilities from other member states.

• Defines "corporate giveaway" as any company-specific grant or company-specific tax incentive, with company-specific tax incentive meaning any tax rate change offered to a particular company unavailable to similarly-situated companies.

• Excludes from the compact's restrictions: workforce development grants for employee training, local government incentives, and state incentives for companies already located within a member state that are intended to keep or expand in-state facilities.

• Establishes the Phase Out Corporate Giveaways Board composed of gubernatorial appointees from each member state to meet annually and publish suggested compact revisions in December each year to progressively phase out additional forms of corporate giveaways.

• Permits member states to withdraw with 6 months' written notice to other member states' chief executives and grants state attorneys general enforcement authority, with taxpaying residents having standing to compel enforcement.