State governments around the country may have to contend with a bombshell on tax credits recently dropped by the 6th Circuit. The court said that Ohio's investment tax credit -- which allows corporations to offset their corporate franchise taxes in proportion to new machinery they bring to the state -- violates the dormant commerce clause. Dozens of other states that use similar tax credits to lure businesses have taken notice.
6th Circuit Rejects Ohio's Use of Tax Credit
The National Law Journal
September 17, 2004
This article requires premium access
This article requires premium access to Law.com. Please sign in or subscribe to read the full text.