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Thursday, September 16, 2004

Law - Still more on 6th Circuit decision holding Ohio tax incentives unconstitutional

The Fort Wayne Journal Gazette has an editorial today that begins:

A recent ruling by the 6th U.S. Circuit Court of Appeals in Cincinnati that tax credits to corporations are unconstitutional could eventually affect Indiana. Local and state economic development officials should watch closely as the case continues.

The ruling upheld a lawsuit arguing that an investment tax credit Ohio gave to DaimlerChrysler AG to build a Jeep plant in Toledo constituted preferential treatment and was hence unfair. A lawyer arguing against the tax credits called them corporate welfare.

For more on this, see this 9/8/04 ILB entry, and this 9/3/04 ILB entry that includes a link to the 6th Circuit decision, Cuno v. DaimlerChrysler Inc.

[Update] See also "6th Circuit Rejects Ohio's Use of Tax Credit: Dozens of states that lure businesses with tax credits could be affected", from the National Law Journal.

Posted by Marcia Oddi on September 16, 2004 07:54 PM
Posted to General Law Related