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Anti-Piracy

Almost all federal economic development programs now have anti-piracy provisions, which bar aid to a company that is relocating from one state to another. A number of states have enacted similar measures. A California law, for example, prohibits public agencies from providing any form of assistance to auto dealerships or large-scale retail stores relocating from one city to another in the same market area. A Michigan law allows a city to veto a property tax abatement provided by another city when it's used to move a business from the former city to the latter. Currently, however, there are no restrictions on local or state subsidies used to lure businesses across state lines.

More Information:

  • Good Jobs First has extensive resources to help grassroots organizations and policymakers ensure that economic development subsidies are accountable and effective.

 

Rules

Anti-Piracy Rules - Wisconsin

  • State
    • In 1993, Wisconsin enacted the following law to prevent cities from using industrial development revenue bonds to lure companies and jobs from other parts of the state. Cities have the power to finance industrial development by issuing bonds. More

    Anti-Piracy Rules - Puerto Rico

  • State
    • The Commonwealth of Puerto Rico has taken the unusual step of enacting legislation to deter job piracy from other locations in the U.S. Puerto Rico and Gary, Indiana are the only jurisdictions known to have laws governing their own attempts to poach jobs from other areas. Puerto Rico's Tax Incentives Act requires companies applying for the Act's tax exemptions to disclose whether their proposed facility will adversely affect workers in other parts of the United States. More

    Anti-Piracy Rules - New Mexico

  • State
    • In 1993, the state of New Mexico enacted a law denying enterprise zone benefits to companies relocating from other parts of the state. Enterprise zones are designed to encourage economic development and job creation in distressed areas by providing tax breaks and other assistance to companies that locate facilities within the zone. More

    Anti-Piracy Rules - Michigan

  • State
    • For years cities have been offering tax breaks to large corporations as a way to draw investment and jobs to their own jurisdictions. In effect, these tax breaks pit one city against the other while benefiting already wealthy corporations at the expense of local tax bases. More

    Anti-Piracy Rules - Gary, IN

  • Local

    • In late 1980s, the Calumet Project for Industrial Jobs, a coalition of labor unions, churches, and community groups began to demand changes in local and state policies governing tax abatements and subsidies for corporations. An investigation in the town of Hammond had revealed that sixteen companies had received $15 million in tax abatements in 1988. They had promised to create 804 jobs, but delivered only 75. In Gary, five firms received abatements in exchange for 106 new jobs, but created only 50. Moreover, many companies were playing one city against another, both to obtain the biggest subsidies and also to undermine labor unions and attempts to raise wages. More

    Anti-Piracy Rules - California

  • State
    • Enacted in 1999, this law (1999 Assembly Bill 178) prohibits a redevelopment agency, city, or county from providing any form of financial assistance to an automobile dealership or big box retailer, or a business entity that sells or leases land to an automobile dealership or big box retailer, that is relocating from one community to another community within the same market area until January 1, 2005. More

    Anti-Piracy Rules - Alabama

  • State
    • In 1987, the state of Alabama enacted a law denying enterprise zone benefits to companies relocating from other parts of the state. Enterprise zones are designed to encourage economic development and job creation in distressed areas by providing tax breaks and other assistance to companies that locate facilities within the zone. More

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