Potential Legal Pitfalls Facing State and Local Enterprise Zones

摘要

The range of state and local experimentation with tax, regulatory and other incentives designed to attract capital investment and employment to the most depressed areas of the nation's cities and towns, though impressive, does raise some legal questions. The article identifies and discusses six areas in which there is current or potential conflict between EZs and state and federal statutes, constitutional provisions, and case law. The article also suggests ways of improving state and local programs by addressing and satisfying the letter and spirit of the law.