Innovation and Competitiveness Act

[AI summary unavailable — showing source text] Innovation and Competitiveness Act - Business Activity Tax Simplification Act of 2006 - Amends federal law concerning the power of a state to impose a net income tax on income derived from interstate commerce to extend the exemption from such tax with respect to solicitations for, and sales of, tangible personal property shipped from outside the state to all other forms of property, services, and other transactions fulfilled from a point outside the state. Makes such net income tax prohibitions applicable to other business activity taxes specified by this Act. Prohibits imposing a net income tax or other business activity tax on a person's activities in interstate commerce unless such person has a physical presence in the state during the taxable period with respect to which the tax is imposed. Lawsuit Abuse Reduction Act of 2006- Amends Rule 11 of the Federal Rules of Civil Procedure (Signing of Pleadings, Motions, and Other Papers; Representations to Court; Sanctions) with respect to mandatory court sanctions for frivolous lawsuits and award of attorney's fees to parties prevailing on Rule 11 motions. Applies Rule 11 to state civil actions that substantially affect interstate com…