Public Utility Tax Rebates: Firms meeting the criteria for targeted industry tax credits are eligible for a rebate of 50 percent of the public utilities tax imposed on new or increased consumption of gas and electricity for five years. The public utilities tax rate is 4.25 percent. The utility tax on the consumption of electric by licensed manufacturers and food or agribusiness processors is reduced from 4.25 percent to 2 percent. Additionally, electric consumed in the manufacture of automobiles is exempt from the utility tax.
Corporate Income Tax Credits (Targeted Industry & Targeted Areas): Firms within targeted industries qualify for corporate income tax credits of $400 for each new employee and $400 for each new $100,000 investment. Firms within targeted industries who also locate in a targeted area, qualify for $650 for each new employee and $650 for each new $100,000 investment. Firms must invest a minimum of $200,000 and create a minimum of five new positions.
Brownfields Tax Credit Program: Provides tax credits to any taxpayer who invests more than $100,000 in a qualified brownfield facility and who has hired at least five qualified employees during any taxable year. Companies that locate in a target brownfield are eligible to receive tax credits for new employees ($900 for each new employee), capital investment ($900 per each $100,000 of investment). Those in non-targeted areas are eligible for a $400 credit for every $100,000 of capital investment and $400 for every job created.
Small Business Energy and Facilities Revolving Fund: An investment in energy efficiency-and economic sustainability-came in the form of a $500,000 grant from the U.S. Department of Commerce, which DEDO matched with funds from the DSF. The fund provides loans at market or below-market interest rates to businesses that will create or retain jobs in industries that promote energy efficiency or recycling.
New Economy Jobs Program: The New Economy Jobs Program is designed to provide an innovative tool to bring high-wage jobs to Delaware and make the state more competitive, while allowing the state to effectively recruit and establish headquarters, research and development jobs, and specialized financial services firms. The legislation provides businesses up to a 65 percent rebate on withholding taxes. To qualify, an employer must add at least 50 net new jobs for new Delaware taxpayers with each having an annual salary of at least $105,000.
Delaware Strategic Fund: The Delaware Strategic Fund represents the primary funding source used by the Delaware Economic Development Office to provide customized financial assistance to businesses. For businesses considering locating in the State of Delaware, financial assistance may be provided in the form of low interest loans, grants, or other creative instruments to support the attraction of businesses that pay sustainable wages. The Delaware Strategic Fund also represents the primary funding source used by for SBIR Bridge Grants and Brownfield Grants.
Small Business Innovation Research: The DSF also supports business research through funding bridge grants that will bring innovative new products, jobs and revenue to Delaware. Small Business Innovation Research (SBIR) bridge grants provide funds to businesses located in the State of Delaware that have been awarded assistance from the federal program.
Virtual Emerging Technologies Incubator: The state of Delaware is focused on creating an environment that supports the growth of technology-based companies. The program provides services to start-up technology firms - including general legal advice, accounting, marketing, financial, patent and trademark services - via the Internet, webcasts, interactive sessions, self-paced learning modules and more.
The Delaware Access Program: The Delaware Access Program is designed to give banks a flexible and extremely non-bureaucratic tool to make business loans that are somewhat riskier than a conventional bank loan, in a manner consistent with safety and soundness. It is designed to use a small amount of public resources to generate a large amount of private bank financing, thus providing access to bank financing for many Delaware businesses that might otherwise not be able to obtain such access.
Experimental Program to Stimulate Competitive Research (EPSCoR): A National Science Foundation program, it provides states with a two-to-one match of funds invested to stimulate research. Delaware has made a $4.5 million investment, which enables $9 million in EPSCoR funds to support research and technology transfer at Delaware's colleges and universities.
Clean Energy Research Center: The Center provides grant funds and support for the fuel cell industry.
Green Industries: Green manufacturers may be eligible for tax credits if they reduce chemical waste by 20 percent, reduce other waste by 50 percent, use 25 percent recycled materials in their manufacturing, and take other steps to remove materials from Delaware's solid waste stream.
Delaware State Contact:
Alan B. Levin
Cabinet Secretary
Delaware Economic Development Office
Incentive and tax information is provided to Area Development by each state's economic development or commerce agency for information purposes only and is subject to revision at any time by the state government. Please contact the state agency directly for full requirements and offerings.
Delaware Direct Financial Incentives 2012
Delaware's economic development, finance and tax organizations provide a range of incentive programs to initiate new business and commercial investment. Specific programs include no sales tax, no property tax, the New Economy Jobs Program, and targeted industry tax incentives.
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