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0hio Case May End Era of Unlimited Incentives
ENR, 2004-09, Vol.253 (11), p.10
Copyright (c) 2004 The McGraw-Hill Companies, Inc. All rights reserved. ;ISSN: 0891-9526
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Title:
0hio Case May End Era of Unlimited Incentives
Author:
Korman, Richard
;
Barnes, Jonathan
Subjects:
Appeals
;
Automobile industry
;
Corporate income tax
;
Court decisions
;
Economic development
;
Employers
;
Factories
;
Federal court decisions
;
Interstate commerce
;
State court decisions
;
Subsidies
;
Tax credits
;
Tax cuts
;
Tax incentives
;
Tax revenues
Is Part Of:
ENR, 2004-09, Vol.253 (11), p.10
Description:
Reversing the decision of a federal district court judge, a three-judge appeals court panel in Cincinnati ruled Sept 2 that Ohio and the city of Toledo violated the US Constitution's Commerce Clause and its provisions against discriminatory taxes on interstate commerce by granting a break in 1998 on some corporate income taxes to DaimlerChrysler AG. Under the pact, DaimlerChrysler received a 10-year exemption from property taxes and an investment tax credit of 13.5% for equipment and machinery, worth a total of $280 million. The appeals court panel essentially called the investment tax break unfair. The court said that the investment tax credit discriminates against interstate economic activity by coercing businesses already subject to the Ohio franchise tax to expand locally rather than out-of-state. Unlike a direct state subsidy that might have the same effect, location-based incentives are an attempt to regulate interstate commerce with a state's ability to tax, said the panel.
Publisher:
New York: BNP Media
Language:
English
Identifier:
ISSN: 0891-9526
Source:
ProQuest Central
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