The proposed bill introduces a new chapter, CHAPTER 72, titled the "Agreement to Phase Out Corporate Incentives Compact Act," into Title 44 of the General Laws concerning taxation. This chapter allows any state in the United States and the District of Columbia to become a member of the compact by enacting the agreement in a specified form. It defines key terms such as "Facility," which includes various types of company locations; "Party state," referring to states that have enacted the compact; "Political subdivision," encompassing various governmental entities; and "Subsidy," which describes economic benefits granted by state governments or political subdivisions that reduce costs for specific ventures.

The bill establishes an anti-poaching prohibition, which prevents party states from providing subsidies to private enterprises for the purpose of selectively supporting specific industries or companies, or to entice them to relocate existing facilities or open new ones within party states.

Additionally, the bill designates the governor or their designee as the compact administrator for each party state, responsible for maintaining an accurate list of all member states and facilitating the exchange of necessary information. The enforcement of the compact will be managed by the attorney general of each member party state, and taxpaying residents of any member state will have standing in the courts to compel enforcement.

The compact is intended to be liberally construed to achieve its purposes, and it includes provisions ensuring that if any part of the compact is declared unconstitutional, the validity of the remaining sections will not be affected. The act will take effect upon passage.