Almost all federal economic development programs now have anti-piracy provisions, which bar aid to a company that is relocating from one state to another. A number of states have enacted similar measures. A California law, for example, prohibits public agencies from providing any form of assistance to auto dealerships or large-scale retail stores relocating from one city to another in the same market area. A Michigan law allows a city to veto a property tax abatement provided by another city when it’s used to move a business from the former city to the latter. Currently, however, there are no restrictions on local or state subsidies used to lure businesses across state lines.
More Information:
- Good Jobs First has extensive resources to help grassroots organizations and policymakers ensure that economic development subsidies are accountable and effective.
