State: interstate compacts and agreements; corporate welfare prohibition compact; enact. Creates new act.

HB 5413 creates Michigan's entry into a proposed interstate compact that prohibits states from offering targeted subsidies to specific businesses or industries to lure them into relocating or opening new facilities. The bill would ban state or local government subsidies - such as direct grants, tax breaks, or favorable regulations - intended to favor particular companies or industries, while excluding general infrastructure benefits or broad tax cuts. If enough states join (reaching a three-fifths majority in both U.S. Congress chambers), participating states must stop providing new targeted subsidies, though existing contracts would remain valid. The compact establishes enforcement mechanisms allowing taxpayers to sue to compel compliance and requires states to coordinate with Congress once the threshold is met.