HB367 Alabama 2021 Session

Summary

Primary Sponsor

Andrew SorrellAuditor

Republican

Session

Regular Session 2021

Title

Interstate Compact to Phase Out Corporate Giveaways, established, membership, terms, termination, provided

Summary

HB367 would create an interstate pact to phase out corporate giveaways by banning state company-specific tax incentives and grants aimed at luring relocation of facilities between member states.

What This Bill Does

It would establish the Interstate Compact to Phase Out Corporate Giveaways and allow states to join. It prohibits member states from offering company-specific tax incentives or grants to entities to relocate HQ, manufacturing facilities, offices, or other real estate to another member state. It sets definitions, includes exclusions and withdrawal rules, creates enforcement mechanisms, and establishes a national board to propose improvements over time. The compact takes effect once two or more states adopt it.

Who It Affects

• States and local governments: must stop offering company-specific tax incentives or grants aimed at luring relocation of facilities to other member states.
• Businesses and corporations with headquarters or facilities: cannot rely on or be targeted by state incentives to relocate to another member state, effectively limiting relocation inducements.

Key Provisions

• Establishes the Interstate Compact to Phase Out Corporate Giveaways and defines its purpose and scope.
• Defines key terms: company-specific grant, company-specific tax incentive, corporate giveaway, located in any other member state, and member state.
• Anti-poaching prohibition: prohibits member states from offering any company-specific tax incentive or grant to relocate to another member state.
• Exclusions: workforce development grants, local government incentives, and state incentives within a state's own borders are not subject to the compact.
• Withdrawal: a member state may withdraw with six months' written notice.
• Enforcement: chief law enforcement officers enforce the compact; residents in member states have standing to enforce.
• National board: a board appointed by each member state's chief executive to propose annual revisions and improvements, and to collect testimony from stakeholders.
• Effectiveness: the compact takes effect after two or more states adopt it, and this Alabama act becomes effective on the first day of the third month after passage and governor's approval.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Compacts