II 108th CONGRESS 2d Session S. 2881 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.

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.