Speakers from the Council on State Taxation discuss how and why the Supreme Court's Cuno decision revived the debate over the constitutionality of incentives. The case's origins and path through the federal court system is described, and the reasons why the initial Sixth Circuit decision – now rendered invalid as a precedent in other circuits – was unsatisfactory to both the business community and other parties to the suit. The speakers also address why the Supreme Court remanded the case based on issues of standing and what sort of outcome might have been likely, based on oral arguments, had the court ruled on the merits.

The speakers all address pending federal legislation related to tax credits and incentives. The prospects are good for eventual passage of the Economic Development Act, which would reaffirm the authority of states to offer incentives for economic development. Bill sponsors understand the urgency, though Congress may be reluctant to act quickly, given the Supreme Court's decision to remand the Cuno case.