State Strategies to Challenge Corporate Subsidies
State Strategies to Challenge Corporate Subsidies
By Jessica Garland, Senior Associate of Legislative Affairs

Corporate tax giveaways come in many forms. They can be tax breaks, exemptions, subsidies, incentives, loopholes, grants; even deregulation and privatization can include fiscal notes. These corporate tax giveaways are what we call “invisible spending” in our state budget, and communities foot the bill. We have lost billions to corporate tax giveaways that simply transfer our public dollars to the ultra-wealthy, rather than funding for education, healthcare, and housing.
Fighting corporate subsidies as a legislator can feel isolating and futile – these fights involve challenging multinational corporations, and a media machine falsely branding corporate tax giveaways as “economic development.” But wins are possible. Past successes in New York, Virginia, Missouri, and Maryland demonstrate that wins are possible.
Below find a summary of key strategies and resources to challenge corporate subsidies in your state. Special gratitude to Arlene Martínez of Good Jobs First and Pat Garofalo of American Economic Liberties Project whose expertise is reflected in this summary.
State Strategies
- Collaboration Between Legislators & Community Advocates – Working together, legislators and community advocates can build stronger strategies with secure wins. By ensuring the community members most impacted by policy decisions have a seat at the decision-making table alongside elected officials, legislators and advocates can amplify community needs and priorities over those of corporate interests, better coordinate their efforts on the ground and in state chambers, and build grassroots momentum that shifts political realities towards implementation of economic policies that empower everyday people rather than centralize power and profits in the hands of the elite few. At SiX, we call this governing model, which centers the inherent authority of the people most impacted by policy decisions, “collaborative governance.”
- Engage Local Communities – Effective community engagement is fundamental to successfully oppose corporate subsidies and/or negotiating deals to mitigate harm from such tax giveaways. Engaging local residents on proposed corporate tax giveaways and economic development plans not only strengthens communities’ capacity to fight back via political pressure in the moment but also empowers residents to identify solutions that meet their needs (ex: crafting and enforcing community benefit agreements).
- Lean into transparency – Expose how incentives pass versus the incentive itself. Often, the lack of transparency behind incentive deals can derail the incentive and is easier to communicate to the public than the actual incentive.
- Fighting Corporate Giveaways is Bipartisan – As seen with the partnership between MI Reps. Carra and Wegela, fighting corporate subsidies is a bipartisan issue and important both to legislators and residents regardless of their political identity.
- The Data is On Your Side – Data consistently shows that corporations dramatically overestimate their economic benefits (such as the number of jobs they’ll create), strain local resources, and increase the cost of living without increasing residents’ quality of life. Beyond the fact that corporate tax giveaways draw money away from community benefits and public services by functionally transferring more wealth to the rich, many of the corporations pursuing tax giveaways violate regulatory laws meant to protect workers, consumers, the environment, and residents.
- Lead with an Affirmative Vision – It is not enough to pursue economic development by solely resisting corporate tax giveaways. Legislators, partners, advocates, and community leaders should emphasize the programs and benefits that community tax dollars could fund if channeled back to public services instead of subsidies for the corporate elite. Painting an affirmative vision of how tax dollars should be spent on supporting local communities not only weakens corporate power hoarding but also generates buy-in and public momentum for funding public programs like schools, mass transit, affordable housing, and affordable healthcare.
- Know What You Can Demand – State and local lawmakers have the power to demand more standards, information, and regulatory requirements in economic development deals than they may think. Knowing what questions to ask and what requirements to include within deals (such as performance based incentive agreements, community benefit agreements, additional workers rights protections, accountability to specific outcomes, regulatory data tracking, water use requirements for data centers, and transparently shared reports) will affect how harmful corporate tax giveaways can be and shape economic development plans to better meet community needs. Protip: Corporate tax giveaways are an inherently bad use of public tax dollars. It’s strategic to oppose them fully and organize from that position.
State Resources
- Good Jobs First’s State Profiles provide a brief history of each state’s track record on the use of economic development subsidies, a list of the state’s key subsidy programs, state-specific research, and leading subsidy watchdog groups where relevant
- Good Job’s First numerous trackers (including the Subsidy Tracker, Amazon Tracker, Violations Tracker) provide excellent data to demonstrate where corporations get taxpayer assistance, the revenue governments forgo to tax abatements, which corporations are breaking what laws, and how much the public subsidizes Amazon. Similarly, their Tax Break Tracker reflects how much revenue state and local governments have reduced or foregone through their tax abatements.
- American Economic Liberties Project’s Taking on Corporate Subsidies Toolkit overviews nine policies that state and local lawmakers can pursue to reform and rework corporate subsidy programs (in the event such subsidies cannot be fully abolished) so that programs are more transparent, better serve local communities, and don’t entrench dominant corporations in local economies.
- Floodlight coverage on Harvard’s Electricity Law Initiative report projections showing all U.S. consumers will pay billions of dollars to build new power plants to serve Big Tech, how utility companies are using or scaling dirty power plants to meet data center demands, and regulatory suggestions to protect ratepayers.
- SiX’s Corporate Tax Giveaways Questions for Policymakers guide provides a list of simple questions lawmakers can ask to the bill sponsors of potential corporate tax giveaways during committee hearings to help the public understand how much the bills will cost them and who will actually benefit. The resource also includes guidance for effective testimony and some amendment ideas.
- SRA’s Community Economic Development Agenda Resources outlines seven guiding principles for progressive economic development as well as resources from Good Jobs First, Center on Budget and Policy Priorities (CBPP), Economic Power Institute (EPI), and the Roosevelt Institute on both why current corporate economic development strategies don’t benefit local communities and how to improve economic incentive strategies.
We already know that Big Tech’s Data Centers are the latest frontier of this fight
Big Tech’s data centers and utilities costs are the next frontier of attempted corporate tax abatements. Beyond data centers guzzling communities’ water and electricity (which drives up the utilities cost for local ratepayers) to enhance their profit margins, utility companies often use the higher energy demand from data centers to justify expanding their gas and coal infrastructure (while charging wholesale rates to data centers) instead of investing in cleaner energy. This means communities will pay even higher utilities costs while the environment – locally, regionally, and globally – becomes even more polluted, fragile, and hazardous to human health, while the data centers get tax breaks. SiX is here to support you in this fight. Contact us here.