Tax Incentives & Financing in Delaware

The Delaware Strategic Fund is the primary funding source supporting businesses with expansion, retention and relocation of businesses to the state of Delaware. For more information on the process please contact Becky Harrington at bharrington@choosedelaware.com. In addition, the Division of Small Businesses may also offer low-interest loans may also be offered to projects on commercially contaminated/worn locations such as Brownfield sites. For more information please click here.

The Site Readiness Fund provides grants, loans or other economic assistance to qualified businesses or local governments that invest in constructing, renovating or improving commercial, industrial sites that are readily available to new businesses, established businesses that are considering moving to the state or existing businesses within the state that need additional sites to remain or expand in Delaware. Preference to properties and projects that align with the State’s Strategy Investment Levels 1, 2, and 3.  State Investment Level Map. For more information and the application please click here.

Managed by the Transportation Infrastructure Investment Fund Council, this fund allows businesses to make roadway infrastructure improvements that will support job-creating projects in Delaware. The council will consider applications and make funding recommendations to Delaware’s Transportation Secretary and the Secretary of State. For more information and the application please click here

Target early stage and small to medium-sized companies that are growing out of their existing space in Delaware, as well as similar companies from outside of the state which are considering relocating or expanding to Delaware. For more information on the application process please contact Noah Olson, nolson@choosedelaware.com.

The State of Delaware offers matching up to $100,000 per project. For more information please click here.

Through a competitive award process, businesses can receive up to $25,000/$100,000 in matching grants to put toward a wide range of eligible expenses. Grants up to $25,000 for Entrepreneur Class and up to $100,000 for STEM Class. The funds are intended as a $3 (state) to #1 (business) match. The Division can award up to 15 grants per application round (5 STEM/10 Entrepreneur). For information on EDGE grants, please click here or contact Noah Olson at nolson@choosedelaware.com.

Delaware’s State Small Business Credit Initiative (SSBCI) are a set of programs aimed at providing access to capital for small and early-stage businesses, particularly those in underserved areas. The Division will work with financial lending partners to distribute SSBCI funds through four programs – two of which support small business loans: Delaware Loan Participation Program and the Delaware Capital Access Program (DCAP), and two which supports start up and early stage businesses: The Accelerator and Seed Capital Program and the Early-Stage Venture Capital Program. Visit de.gov/ssbci for more information.

A Delaware Department of Agriculture program designed to increase the viability of Delaware’s agricultural industry by broadening lending opportunities across the agricultural sector. Equipment loans will be available for supporting activities including production, processing, packaging, aggregation, and distribution for both small and large-scale operations. View the Fact Sheet here. To view the program webpage visit: de.gov/dafp. Contact the Delaware Dept. of Ag at DAFP@delaware.gov for the application and to confirm your project qualifies for the program.

For more information click HERE.

With this program, businesses can borrow from $10,000 up to $2,000,000 per project, with attractive terms and interest rates for energy efficiency measures and renewable energy initiatives. For more information click HERE.

Designed to help qualifying commercial, industrial, agricultural, nonprofit and multifamily (with five or more units) property owners access long term financing for the installation of qualifying energy improvements. Such improvements may include any construction, renovation or retrofitting of energy efficient technology, clean energy systems, or qualifying waste heat recovery technologies that are permanently fixed to qualifying commercial property. For more information click HERE.

DNREC provides grants up to $250,000/year/project through the Energy Efficiency Investment Fund to help commercial and industrial customers replace aging, inefficient equipment and systems with energy alternatives. Grants are also available for new construction. Support from EEIF is available to perform energy assessments, to take widely recognized (prescriptive) improvement steps, and to implement custom, site-specific improvements. For more information click HERE.

The Downtown Development Districts Act was created to leverage state resources in a limited number of designated areas in Delaware’s cities and towns to: spur private capital investment in commercial business districts and other neighborhoods; stimulate job growth and improve the commercial vitality of our cities and towns; and help build a stable community of long-term residents in our downtowns and other neighborhoods. Investors who make Qualified Real Property Investments (QRPI) to commercial, industrial, residential, and mixed-use buildings or facilities may apply to DSHA for a DDD Rebate. For more information click HERE.

Are available to employers who add a minimum of 50 – 200 new jobs to the state within prescribed salary ranges and are available for up to 40% of withholding taxes collected and paid on behalf of the new employees. Additional credits are available to employers that create new jobs in targeted growth zones, incorporated municipalities and former Brownfields sites that provide additional credits of up to 25% of the withholding taxes.

Title 30, Ch.20, S.9; Form 2080DE

Encourage startups and investments into new business facilities and require creation of 5 new jobs and provide a capital investment of $200,000. 

• Brownfields Credit – For businesses located on a former brownfield site within a targeted area, the New Business Facility Tax Credit increases to $900 per qualified employee and $900 per $100,000 capital investment.
• Clean Energy Technology Device Manufacturers’ Credit – For manufacturers of solar power devices, fuel cells, wind power devices, or geothermal power devices, the New Business Facility Tax Credit provides a credit of $750 per new job rather than $500.
• Public Utility Tax Credit –  The Public Utility Tax Credit is available to a company if they have expanded their facility or moved to a new one.
• Gross Receipts Tax Credits – Gross Receipts Tax Credits must be applied monthly but can result in a reduction of 5% to 90% of gross tax receipts for eligible businesses.

Form 402AP 9901

The Business Finder’s Fee Tax Credit supports and incentivizes existing companies to encourage customers, suppliers and service providers to operate in Delaware. The sponsoring business and new business must complete a joint application, with the new business creating or intending to create at least 3 new full-time jobs.

Aimed at promoting new research and development, this credit may be available to businesses looking to engage in new research in Delaware.

Title 30, Ch.20, S.8; Form 2071AC0007

Promoting the restoration of historic properties, the Historic Preservation Tax Credit offers a credit of up to 20% to 40% of qualified expenditures. The credit is not refundable, but may be sold or transferred. Credits may be taken against Personal and Corporate Income Taxes and the Bank Franchise Tax.

Form 1811AC 090
Form 1811CC 0701
https://history.delaware.gov/preservation/taxcredit.shtml

The Land and Historic Resource Conservation Tax Credit celebrates the protection of some of Delaware’s most important properties. After approval, a gift of eligible land/properties to public agencies and certain non-profit organizations may result in a credit of 40% of the land’s fair market value (approved by Delaware State Historic Preservation Office) against the Personal and Corporate Income Taxes. The maximum credit cannot exceed $40,000 in a calendar year.

Form 1801AC 0009

Neighborhood Assistance Tax Credit provides funding for businesses looking to invest in lower income communities and provides credits against personal and corporate income taxes at 50% of the approved investment amount up to $100,000 per taxpayer every year for up to three years. This credit requires approval from the Director of the Delaware State Housing Authority.

Title 30, Ch.20, S.1; Form 2001AC 0809

The disabilities tax credit offers those businesses who hire individuals from vocational rehabilitation facilities 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.