The bill proposes the establishment of the "Agreement to Phase Out Corporate Incentives Compact Act" within Title 44 of the General Laws, specifically as a new chapter. This act would allow any state in the United States, including the District of Columbia, to become a member of this compact by enacting the agreement. The act defines key terms such as "facility," "party state," "political subdivision," and "subsidy," and sets out the framework for membership and definitions relevant to the compact.

The core of the act is the prohibition of subsidies by party states or their political subdivisions to private enterprises for the purpose of supporting specific industries or companies, or to entice them to relocate or open new facilities within their borders. The act designates the governor or their designee of each party state as the compact administrator, responsible for maintaining a list of party states and exchanging information necessary for the administration of the compact. Enforcement of the compact is to be carried out by the attorney general of each member party state, and taxpaying residents of member states are granted standing to require enforcement. The act also includes clauses on construction and severability to ensure its broad interpretation and continued effectiveness even if parts are declared invalid. The act would take effect immediately upon passage. There are no deletions from current law indicated in the bill.