Rhode Island 2025 Regular Session

Rhode Island Senate Bill S0425

Introduced
2/26/25  

Caption

Establishes a compact agreement among at least two (2) states to prohibit the use of subsidies to selectively retain industry or company entice relocation from one state to another state or to open a new facility.

Impact

The proposed law would signify a significant shift in how states approach corporate incentives and subsidies. By adopting this compact, states would commit to refraining from using tax benefits or financial grants to attract businesses at the expense of neighboring states. This could lead to a reduction in the aggressive tax incentive competition among states that has become prevalent and may redirect focus towards improving overall business climates through more sustainable means rather than short-term gains.

Summary

Bill S0425, known as the Agreement to Phase Out Corporate Incentives Compact Act, seeks to establish a framework allowing states to enter into an agreement that prohibits the selective granting of subsidies to particular industries or companies. This act is designed to prevent states from enticing businesses by offering financial advantages to relocate from one state to another. The bill is introduced with the aim of creating a level playing field among states in terms of business incentives, promoting fair competition without favoritism.

Contention

There are notable points of contention surrounding this bill. Proponents argue that it could reduce the disparity in state subsidies that often lead to economic disparities among states. Critics, however, might voice concerns that it undermines a state's ability to incentivize economic growth based on its unique context. The effectiveness and enforceability of such a compact could also be points of debate, particularly regarding how states would evaluate compliance and address violations, potentially leading to lengthy legal disputes.

Companion Bills

No companion bills found.

Previously Filed As

RI S2342

Establishes a compact agreement among at least two (2) states to prohibit the use of subsidies to selectively retain industry or company entice relocation from one state to another state or to open a new facility.

RI H7405

Establishes a compact agreement among at least two (2) states to prohibit the use of subsidies to selectively retain industry or company entice relocation from one state to another state or to open a new facility.

RI H5319

Agreement To Phase Out Corporate Incentives Compact Act

RI S0273

Agreement To Phase Out Corporate Incentives Compact Act

RI S2800

Repeals the Interstate Compact on Industrialized/Modular Buildings in its entirety.

RI H7469

Repeals the Interstate Compact on Industrialized/Modular Buildings in its entirety.

RI S2876

Allows the state to become a member of the physical therapist licensure compact adopted by twenty-five (25) states in order to facilitate the interstate practice of physical therapy with the goal of improving public access to physical therapy service

RI H7213

Allows the state to become a member of the physical therapist licensure compact adopted by twenty-five (25) states in order to facilitate the interstate practice of physical therapy with the goal of improving public access to physical therapy services.

RI H7305

Prohibits discrimination based on housing status, define "assistance animal", make it unlawful to issue discriminatory notices or statements relating to the sale, rental or leasing of housing and to delete an unconstitutional provision.

RI S2536

Prohibits utility companies from limiting the eligibility of a net metering site based on prior consumption and requires excess energy not consumed under the net metering system to be credited to the consumer.

Similar Bills

No similar bills found.