This bill establishes that inverted domestic corporations, defined as companies determined to be inverted by the Internal Revenue Service under section 7874 of the federal Internal Revenue Code, are ineligible for State contracts and development subsidies funded by State resources or independent State authorities. It mandates that any corporation seeking such contracts or subsidies must certify in writing that it is not an inverted domestic corporation. The bill also includes provisions that exempt it from application if it would violate federal law or hinder the receipt of federal funds. The State Treasurer is tasked with creating necessary rules and regulations to implement these provisions.

Additionally, the bill amends existing requirements for applicants seeking development subsidies. It introduces new stipulations, such as the need for applicants to provide detailed information about their corporate structure, employment statistics, and any potential job relocations. Notably, it prohibits the approval of development subsidies for any applicant or its corporate parent that has become an inverted domestic corporation prior to application. Furthermore, if a recipient corporation becomes an inverted domestic corporation during the subsidy term, it is required to repay the total value of the subsidy. The bill also mandates that recipients submit an annual standing certificate attesting to their legal status throughout the duration of the subsidy.

Statutes affected:
Introduced: 52:39-4