New Economy Jobs Tax Credit: Delaware employers may claim a refundable credit against corporation income tax, bank franchise tax, insurance gross premiums tax, and personal income tax liability for creating new jobs in the state. Upon meeting certain minimum eligibility thresholds employers may claim a tax credit equal to 25% of the withholding paid by the employer on behalf of the new employees. The amount of credit increases for each new employee above the minimum job threshold up to 40% of the withholding tax payments. Additional credits are available to employers that create new jobs in targeted growth zones, incorporated municipalities, and reclaimed brownfields. The maximum credit allowed during any calendar year is 65% of the employer’s withholding payments. The term of the benefit can extend up to 10 years.
New Business Facility Corporate Income Credit: Program provides an as-of-right tax credit to businesses that create at least 5 jobs and make 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 – a rebate of 50% of the public utility tax that it owes on the operation of new or expanded facility, over 5 years.
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.
Angel Investor Job Creation and Innovation Tax Credit: This program was established to incentivize early stage investment in high-tech, Delaware businesses to encourage job creation and innovation. Both investors and businesses must qualify and certify with Delaware Division of Small Business. The credit for an investor is 25% of the investment amount in a qualified business. The program limits credits at $125,000 for individuals in a given year, $500,000 for businesses in all years, and has an annual funding cap of $5 million.
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.
Delaware Strategic Fund (DSF): Discretionary program offers low-interest loans and grants to businesses for job creation, expansion, relocation, and brownfield redevelopment.
Delaware New Jobs Infrastructure Fund: The State may provide discretionary grants to businesses for infrastructure improvements that result in job creation and capital investment.
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.