The Phase Out Corporate Giveaways Interstate Compact is a proposed interstate compact in the United States that would commit signatory states to ending the economic development practice of providing targeted subsidies, tax abatements and other forms of financial incentives to private companies. It is frequently formally referred to as the "Agreement for Best Practices in Economic Development" in legislation.
As of November 2021, 15 states had bills before their legislatures that would bind them to the Compact's requirement not to offer subsidies to businesses located in other signatory states, and three other states had had such legislation introduced in previous sessions.
Versions of the Compact have been proposed by think tanks associated with free-market economic policies such as the Mercatus Center at George Mason University and the Mackinac Center for Public Policy. However, support for the Compact has been broadly bipartisan, with left-wing think tanks such as the American Economic Liberties Project also supporting the Compact and both Republican and Democratic legislators sponsoring bills to join the Compact in their states.
Legislators' statements and media reports generally suggest that interest in an interstate compact to end economic development "corporate welfare" was accelerated by the controversy surrounding the Amazon HQ2 bid process, by the subsidies given to Foxconn in Wisconsin and by a growing body of academic research questioning the effectiveness of such programs at creating jobs.
+ State legislation to join an interstate compact on economic development subsidies State Most Recent Session Bill number(s) Alabama 2021 HB367 Arizona 2021 SB1701 Connecticut 2021 HB6176 Delaware 2021 HB10 Florida 2021 HB983 Hawaii 2021 SB359 SB531 HB16 Illinois 2021 HB95 HB145 SB 674 Iowa 2021 HF598 Maryland 2020 HB525 Massachusetts 2021 HD4009 Michigan 2021 HB4971 SB524 Missouri 2019 HCR48 New Hampshire 2020 HB1132 New York 2021 A3718 Pennsylvania 2021 HB 873 Rhode Island 2021 S46 H5316 Utah 2021 SB190 West Virginia 2021 SB95
References
External links Coalition to Phase Out Corporate Tax Giveaways