[bpp]

I'm curious why Congress has chosen not to regulate (or ban) the grant of tax incentives to companies as enticements for development; this seems to easily fall under the interstate commerce clause. All states lose out when they compete against each other in this way.

[otterley]

States can’t expressly discriminate against foreign (i.e., out of state) businesses, but it’s never been held that they can’t subsidize local businesses. Whether the latter amounts to the same thing as the former is an interesting academic question, but the law doesn’t yet say so.

[berberous]

There was actually a case where the court of appeals held these types of tax breaks to violate the commerce clause, but in 2006, the Supreme Court dismissed the case on a procedural issue (that the taxpayers did not have standing). See the below article for more.

https://www.citylab.com/life/2018/01/the-case-for-the-case-a...