[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2881 Introduced in Senate (IS)]







108th CONGRESS
  2d Session
                                 S. 2881

 To clarify that State tax incentives for investment in new machinery 
and equipment are a reasonable regulation of commerce and not an undue 
         burden on interstate commerce, and for other purposes.


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                   IN THE SENATE OF THE UNITED STATES

                            October 1, 2004

  Mr. Voinovich (for himself and Mr. DeWine) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To clarify that State tax incentives for investment in new machinery 
and equipment are a reasonable regulation of commerce and not an undue 
         burden on interstate commerce, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. STATE TAX INCENTIVES FOR INVESTMENT IN NEW MACHINERY AND 
              EQUIPMENT.

    (a) In General.--A State may provide to any entity--
             (1) a credit against any tax or fee owed to the State 
        under a State law; or
             (2) any other tax incentive,
determined by the State to be appropriate, in an amount calculated 
under a formula determined by the State, for investment in new 
machinery or equipment located in the State by the entity that receives 
such credit or such incentive.
    (b) Effect on Interstate Commerce.--Any action taken by a State in 
accordance with this section with respect to a tax or fee payable, or 
incentive applicable, for any period beginning after the date of the 
enactment of this Act shall--
             (1) be considered to be a reasonable regulation of 
        commerce; and
             (2) not be considered to impose an undue burden on 
        interstate commerce or to otherwise impair, restrain, or 
        discriminate against interstate commerce.
                                 <all>