State Tax Credits: Cuno Argument

The U.S. Supreme Court will hear argument today in Daimler Chrysler Corp. v. Cuno and Wilkins v. Cuno (Docket 04-1704). 

Questions presented are as follows:  (1) Whether Ohio's investment tax credit, Ohio Revised Code, sec. 5733.33, which seeks to encourage economic development by providing a credit to taxpayers who install new manufacturing machinery and equipment in the state, violates the Commerce Clause of the U.S. Constitution? (2) Does the dormant Commerce Clause allow a state to attempt to attract new buisness investment in the state by offering credits against the state's general corporate franchise or income taw, where the amount of the credit is based on the amount of the business' new investment in the state? (3) Whether Cuno has standing to challenge Ohio's investment tax credit law?

The case may have major implications for states' use of investment tax credits to lure and retain business.