Implications of this Legal Challenge to Other States

Here is one to gives some thought to. The same thing could happen in your state.

The state of Ohio has asked the full 6th U.S Circuit Court of Appeals to reconsider a ruling from a three-judge panel that declared Ohio 's investment tax credit unconstitutional.

The case involved special tax credits that the state of Ohio gave to the Chrysler Group while it was building in the new Toledo North Assembly plant in the late 1990s and during this decade. The plant was specifically designed to replace an old factory in the center of Toledo that had been in use for more than a century.

The three-judge panel, however, ruled that the investment credit gives preferential treatment to companies that expand within the state, rather than in other states. The judges said the breaks hinder interstate commerce. The ruling, though it didn't rule out other forms of specific aid from state and local government, appeared to call into question all kinds of aid to industry, said one senior Chrysler official familiar with the case.

In fact, if the entire court upholds the three-judge panel's original decision, the Ohio case could be used to challenge programs in other states, The National Taxpayers Union has founded that 35 of the 45 states with a corporate income tax offered credits on new investments.

More here.