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Delaware Direct Financial Incentives 2011

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.

March 2011
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Citizens Bank of Delaware's Matching Loan Partnership Program:
Citizens Bank has formed a partnership with the State of Delaware to create the Citizens Business Bank. This first-of-a-kind program features the Citizens Competitiveness Fund, a $12.5 million low-interest loan program designed to make one-time investments to create and retain jobs and expand business at existing Delaware companies. This partnership will provide companies with an attractive form of capital - at below-market rates - while leveraging the impact of the Governor's economic stimulus policies and providing additional resources to insure continued business growth and stability.

Tax-exempt bond financing:
The Delaware Economic Development Authority (DEDA) provides statewide financial assistance to new or expanding businesses, governmental units and certain organizations that are exempt from federal income taxation (collectively, "assisted persons") by issuing tax-exempt bonds and lending the proceeds of such bonds to these assisted persons. Tax exempt bonds bear lower interest rates than comparable taxable bonds, because the interest paid to bond holders is exempt from federal and Delaware income taxes. Tax exempt financing may be cost effective for projects involving the issuance of more than $1.25 million.

Emerging Technology Funds:
The state of Delaware is focused on creating an environment that supports the growth of technology-based companies. As a key component of the Governor's New Economy Initiative, the Delaware Economic Development Office (DEDO) offers the Emerging Technology Funds - Technology Based Seed Funds (TBSF I and TBSF II) and Pre-Venture Fund to foster creation of technology-based start-ups in fields such as biotechnology, advanced materials, clean energy, information technology, and new chemical applications. The goal of these funds is to invest in "gazelle-like" entrepreneurial projects positioned for fast-growth and wealth creation. An investment from the fund will be the catalyst for an entrepreneur to start a business and a starting point to raise capital.

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.

The Clean Energy Partnership:
The purpose of the Clean Energy Center Partnership is to support the work and research being conducted at the University of Delaware and Delaware State University, and to build a nationally recognized Clean Energy Center based on the strength of these institutions' existing programs. The State is offering matching (1:1) grants for research initiated and paid for by the industry which must be conducted by the University of Delaware and/or Delaware State University. Eligible companies can be from Delaware or surrounding states. However, the research projects must be conducted at the University of Delaware or Delaware State University.

Delaware State Contact:
Judy McKinney-Cherry
Economic Development Director
Delaware Economic Development Office
99 Kings Highway
Dover, DE 19901
(302) 739-4271

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.