Qualifications for Economic Development Incentives

PURPOSE OF THE ACT

Ensuring that economic development incentives and tax credits in this state and any political subdivision thereof go only to qualified enterprises that are not owned in whole or in part by any foreign government or foreign corporation from a country that is adversarial to the United States.

Section 1. Definitions.

For the purpose of this act, the following definitions are established:

1. “Economic development incentive” means any tax credit, tax deduction, grant, or loan offered on a conditional basis by the state of [STATE NAME HERE] or any political subdivision of the state to any corporation doing business in this state.
2. “Foreign government” means a government other than the federal government of the United States or the government of any state, political subdivision of a state, territory, federally recognized Indian tribe, or possession of the United States.
3. “Foreign corporation” means any for-profit, non-profit, charitable institution, association, or non-governmental organization domiciled outside the boundaries of the United States or incorporated by, chartered by, funded by, or controlled by individuals or entities located outside the boundaries of the United States.

Section 2. Disqualifications from Economic Development Incentives.

1. Any corporation doing business in the state of [STATE NAME HERE] shall be disqualified from receiving economic development incentives if that corporation is a foreign corporation from one of the countries specified in subsection (b) of this section or if a foreign individual, government, or corporation from one of the countries in subsection (b) has a 5 percent or greater ownership stake in the corporation even if it is incorporated, chartered, or domiciled in the United States or some other nation.
2. Subsection (a) above applies to the following countries: the People’s Republic of China, the Russian Federation, the Islamic Republic of Iran, the Democratic People’s Republic of Korea, the Republic of Cuba, and the Venezuelan regime.

Section 3. Effective date.

This act shall take full force and effect on July 1, 2025.