SPOTLIGHT PROGRAMS  

New Economy Jobs Tax Credit: Delaware employers may claim a refundable credit against corporate income tax, bank franchise tax, insurance gross premiums tax, and personal income tax liability for creating new jobs in the state. Employers who add a minimum of 50-200 new jobs within designated salary ranges may qualify for an award of up to 40% of new employee withholdings taxes. Additional awards of up to 25% are available for employers who create new jobs in targeted growth zones, unincorporated municipalities, and at former brownfield sites.

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New Business Facility Corporate Income Credit: Program provides an as-of-right tax credit to businesses that create at least 5 jobs and makes a capital investment of at least $200,000 ($40,000 per employee). The minimum credit is equal to $500 per job and an additional $500 for every $100,000 in capital investment. This non-refundable credit cannot be used to offset more than 50% of tax liability in a given year. Unused credits may be carried forward for up to 10 years. Qualifying companies may also be eligible for Public Utility Tax Credits, Brownfields Credit, Clean Energy Technology Device Manufacturers’ Credit, and Gross Receipts Tax Credit.

• Brownfields Credit – For businesses located on a former brownfield site. The tax credit increases to $900 per qualified employee and $900 per $100,000 invested.
• Clean Energy Technology Device Manufacturers’ Credit – For manufacturers of solar power devices, fuel cells, wind power devices, or geothermal power devices. Projects meeting this criterion are eligible for an increased award of $750 per new job.
• Public Utility Tax Credits – This credit may be available if a business expands in the state or moves to a new facility.
• Gross Receipts Tax Credit – This credit can result in a reduction of 5%-90% of gross tax receipts for eligible companies.

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TAX CREDITS

Business Finder’s Fee Tax Credit: This program was established to attract new businesses to Delaware and to give existing Delaware companies an incentive to encourage suppliers, customers, and service providers to establish operations in the state.   To qualify for the refundable tax credit, both the existing business (called the Sponsor Firm) and the relocating business (called the New Business Firm) must jointly file an application and the New Business must create at least 3 full-time jobs.  The Sponsor Firm and New Business are both able to claim an annual credit equal to $500 for each new full-time job created by the New Business.  Credits may be claimed by both businesses for a period of 3 years.‍

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Individuals With Disabilities Act: This program offers a 10% tax credit against personal and corporate income taxes, the Bank Franchise Tax, and the Insurance Premium Tax for 10% of the wages of the qualified employees to businesses who hire individuals from vocational rehabilitation facilities.  

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Research and Development Tax Credit: Offers a refundable tax credit equal to either: (a) 10% of the excess of the taxpayer’s total qualified research and development over its base amount or (b) 50% of Delaware’s apportioned share of the taxpayer’s federal research and development tax credits, with modifications.

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DIRECT FINANCIAL ASSISTANCE

Delaware Strategic Fund (DSF): Discretionary program offers low-interest loans and grants to businesses for job creation, expansion, relocation, and brownfield redevelopment.

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EDGE Grants- The state may provide matching grants for small businesses through a competitive process providing up to $100,000 for STEM-based companies and up to $50,000 for other businesses.

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JOB TRAINING

Workforce Training Grants: The State can offer matching training grants for customized training for up to $100,000 per qualified project. The training is customized to the company’s specific needs.

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Last Updated: May 2023