Number: RS22186
Title: State Investment Tax Credits, the Commerce Clause, and Cuno v. DaimlerChrysler
Authors: Erica Lunder, American Law Division 
Abstract: In 2005, the Sixth Circuit Court of Appeals held in Cuno v. DaimlerChrsyler that Ohio's investment tax credit violated the Commerce Clause of the U.S. Constitution. The case received significant attention because most states have similar credits. In 2006, the Supreme Court held that the Cuno plaintiffs lacked standing to challenge the credit in federal court. Because the Supreme Court based its decision on the issue of standing, it did not address whether the credit violated the Commerce Clause. Introduced prior to the Supreme Court's decision, the Economic Development Act of 2005 (H.R. 2471 and S. 1066) would authorize states to offer tax incentives similar to Ohio's investment tax credit.
Pages: 6
Date: July 25, 2006