Growing and supporting our businesses is one of our biggest priorities in the First State. That’s why we offer a wide variety of economic development incentives to initiate new investments.
Review our available funds, grants and tax credits below and reach out to Becky Harrington, Director of Business Development, at (302) 576-6577 or email@example.com to learn more about eligibility.
To advance the state’s economy significantly through job creation, expansion, and relocation of businesses to the state of Delaware. For more information on the Delaware Strategic Initiative Fund and application process please click here.
In addition, grants and low-interest loans may also be offered to projects on commercially contaminated/worn locations such as Brownfield sites.
To retain and attract companies that environmentally and physically improve the State of Delaware. Once the application is approved, grant funds can be used for construction and/or maintenance.
Eligible projects include:
For more information, please click here.
TIIF is a new fund established to allow businesses to make roadway infrastructure improvements that will support job-creating projects in Delaware. The fund will be managed by the Transportation Infrastructure Investment Fund Council, a nine-member council established by the legislation. The council will consider applications and make funding recommendations to Delaware’s Transportation Secretary and the Secretary of State.
Through a competitive award process, businesses can receive up to $50,000/$100,000 in matching grants to put toward a wide range of eligible expenses. Grants up to $50,000 for Entrepreneur Class and up to $100,000 for STEM Class. And up to 10 grants can be provided per application round (5 STEM/5 Entrepreneur). For more information on EDGE grants, please click here.
Delaware’s Division of Revenue administers tax credits against the corporate and personal income taxes, gross receipts tax, public utility tax and many others. Applications and forms are available through the Division of Revenue or through other administrative agencies as prescribed by law.
Title 30, Ch.20, S.9; Form 2080DE
An applicant for the New Economy Jobs Program must submit an application for certification as a qualified employer to the Secretary of Finance with a copy to the Director of Economic Development before any credits can be approved.
An application must be completed and filed with the Division of Revenue prior to claiming any corporate income tax credits or reductions in license taxes pursuant to Chapter 20, Title 30, of the Delaware Code.
Encourages startup and investment into new business facilities.
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.
If eligible for the New Business Facility Tax Credit, a manufacturer of solar power devices, fuel cells, wind power devices, or geothermal power devices may receive a credit of $750 per new job rather than $500.
If eligible for the New Business Facility Tax Credit, a business is entitled to a 50% rebate of public utility taxes attributable to utility consumption due to a new facility or expansion of a facility. The rebate is available for 5 years.
This computation schedule must be completed and submitted with each monthly and/or quarterly lincese tax return for which a tax reduction is claimed.
If eligible for the New Business Facility Tax Credit, a business is entitled to a reduction of 5% to 90% of the gross receipts tax attributable to the new facility over a period of ten years.
If eligible for the New Business Facility Tax Credit in a targeted area, a business is entitled to a reduction of 5% to 100% of the gross receipts tax attributable to the new facility over a period of 15 years.
Title 30, Ch.20D Effective January 1, 2019. Sunsets after 2021. https://business.delaware.gov/incentives/
Eligible investors and businesses must be qualified and certified with the Delaware Division of Small Business prior to any credit being granted.
The Angel Investor Job Creation and Innovation Act creates a refundable Personal Income Tax credit for qualified investors in innovative, Delaware-based small businesses, to spur job creation and innovation.
Title 30, Ch.20, S.10
Incentivizes existing companies to encourage customers, suppliers, and service providers to operate in Delaware. To qualify for tax credit, which may be claimed against the Bank Franchise Tax, Insurance Premium Tax, Personal and Corporate Income Taxes, the Gross Receipts Tax and the Public Accommodation Tax.
Title 30, Ch.20, S.8; Form 2071AC0007
The Delaware Division of Revenue must first approve any taxpayer electing to qualify for the Delaware Research & Development Tax Credits. After receiving tax credit approval from the Delaware Division of Revenue, the amount of approved credit on Delaware Form 2071AC must be transferred to the appropriate line on Delaware Form 700.
This Credit promotes new research and development by lowering payments on taxable expenses. Two methods are available to determine the credit, which may be claimed against the Corporate and Personal Income Taxes.
Promotes the rehabilitation of historic properties and continued use of historic properties rather than demolition. If approved by the State Historic Preservation Office, a credit of 20% to 40% of qualified expenditures is available. 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.
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.
Title 30, Ch.20, S.1; Form 2001AC 0809
Encourages investment in impoverished to moderate income locations. Tax credits against the Personal and Corporate Income Taxes can be given at 50% of the approved investment amount up to $100,000 per taxpayer every three years. Aggregate credits granted may not exceed $1,000,000 in any fiscal year. Must first receive approval (in the form of a letter) from the Director of the Delaware State Housing Authority.
Title 30, Ch.20B
Incentivizes Delaware employers to hire job candidates referred by vocational rehabilitation facilities. The employer may receive a 10% tax credit against the Personal and Corporate Income Taxes, the Bank Franchise Tax, and the Insurance Premium Tax for 10% of the wages of qualified employees, up to a maximum credit of $1,500. Credits are available for the first 3 years of employment.
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