But just when it looked as though the incentive monster was being cut down to size, the CHIPS Act and the Inflation Reduction Act are threatening to give it an enormous infusion of steroids. The CHIPS Act, at least, requires companies to do some good in return. In February, Ford agreed to build its new electric vehicle plant in Michigan, but only after extracting a promise of as much $1.75 billion in state and local incentives. To limit the damage to state and local budgets and ensure meaningful community impacts, there are a few things we can do. First, Congress should consider amending the U.S. CHIPS Act to ensure that there are no requirements that projects receive any state or local funding in order to obtain federal dollars.

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