The Commonwealth of Puerto Rico has taken the unusual step of enacting legislation to deter job piracy from other locations in the U.S. Puerto Rico and Gary, Indiana are the only jurisdictions known to have laws governing their own attempts to poach jobs from other areas. Puerto Rico's Tax Incentives Act requires companies applying for the Act's tax exemptions to disclose whether their proposed facility will adversely affect workers in other parts of the United States. If so, the governor can deny the application. The law also enables the governor to impose penalties on companies whose claims of no adverse impacts later prove to be untrue. In 1993, Wisconsin enacted a law to prevent cities from using industrial development revenue bonds to lure companies and jobs from other parts of the state.
Cities have the power to finance industrial development by issuing bonds.
The 1993 law bars municipalities from using bonds to finance projects that will result in job losses elsewhere in the state, unless the company meets certain requirements.