Delaware offers a business-friendly environment with a variety of incentives to encourage investment, job creation, and innovation.  These incentives are tailored to various industries, from biotechnology and manufacturing to clean energy and workforce development.  Here’s an overview of the most impactful programs available in Delaware, including eligibility requirements and potential value.

Delaware New Economy Jobs Tax Credit

Overview

This tax credit incentivizes businesses that create new, high-paying jobs in Delaware, particularly in high-tech and advanced industries.  It is aimed at promoting innovation and enhancing the state’s competitive position.

Eligibility

• Must create at least 10 new full-time jobs that pay above the state median wage.

• Jobs must be sustained for at least one year, and the business must operate in specific sectors like information technology, biotechnology, or clean energy.

Incentive Value

• Credit of up to $1,500 per new job created, with the total credit potentially reaching $15,000 per year per business.

• Credit is available for up to 10 years, depending on the job creation and wage criteria.

Application Process

Applications are submitted to the Delaware Economic Development Office (DEDO), which evaluates job creation and wage growth potential before granting the credit.

Delaware Research and Development (R&D) Tax Credit

Overview

The R&D Tax Credit in Delaware offers businesses tax relief for qualifying research and development activities, with the aim of encouraging innovation in science and technology.

Eligibility

• Businesses must be conducting R&D in Delaware related to developing or improving products, processes, or software.

• Eligible activities include experimentation in the physical, biological, and engineering sciences.

Incentive Value

• Businesses can receive a tax credit of up to 10% of eligible R&D expenditures.

• Credits can be applied to corporate income taxes or carried forward for up to five years.

Application Process

Businesses must submit detailed documentation of R&D activities to the Delaware Department of Finance to claim the credit.

Delaware Green Energy Fund

Overview

The Green Energy Fund provides financial incentives for businesses to invest in renewable energy and energy efficiency projects. This fund aims to reduce greenhouse gas emissions and promote sustainable development.

Eligibility

• Businesses must invest in renewable energy systems such as solar, wind, or biomass energy, or adopt energy-efficient technologies.

• Eligible businesses include manufacturers, commercial establishments, and nonprofit organizations.

Incentive Value

• Grants and loans covering up to 50% of the project cost, with a maximum funding amount depending on the type of project.

• Additional incentives are available for projects that meet specific energy-saving goals.

Application Process

Businesses must submit an application to the Delaware Department of Natural Resources and Environmental Control (DNREC), outlining the project scope and potential environmental benefits.

Delaware Brownfield Tax Credit

Overview

Delaware offers tax credits for the cleanup and redevelopment of brownfield sites.  This incentive is aimed at revitalizing underutilized properties and encouraging redevelopment in economically distressed areas.

Eligibility

• Must be involved in cleaning up and redeveloping brownfield sites within Delaware.

• The site must be designated as a brownfield by DNREC.

Incentive Value

• Tax credits for up to 75% of the costs of environmental cleanup, including soil and groundwater remediation.

• The maximum credit depends on the size of the project and the level of contamination.

Application Process

Businesses must apply through DNREC, submitting detailed plans for the site remediation and a breakdown of costs.

Delaware Film Tax Credit

Overview

Delaware’s Film Tax Credit aims to attract film, television, and digital media productions to the state.  The program provides significant financial incentives to offset production costs.

Eligibility

• Productions must meet a minimum expenditure threshold in Delaware, with a focus on creating jobs and utilizing local services.

• Eligible expenses include costs for production, equipment, and local labor.

Incentive Value

• Up to 30% rebate on qualified production expenses.

• Additional incentives are available for projects that employ local crew members or use Delaware-based vendors.

Application Process

Producers must apply to the Delaware Film Office for approval, providing detailed budgets and proof of spending within the state.

Delaware Urban and Industrial Site Reinvestment Tax Credit

Overview

This program incentivizes businesses to redevelop and revitalize underutilized urban and industrial properties.  It promotes sustainable development in areas that need economic revitalization.

Eligibility

• Businesses must be involved in the redevelopment of vacant or underutilized properties in designated urban or industrial zones.

• Projects should involve job creation and increase economic activity in the area.

Incentive Value

• Tax credits covering up to 35% of redevelopment expenses, including demolition, construction, and environmental cleanup.

• The credit is available for up to 10 years, depending on the size and impact of the project.

Application Process

Businesses must apply to DEDO with project details and expected economic impacts.

Delaware Qualified Jobs Tax Credit

Overview

The Qualified Jobs Tax Credit provides tax relief to businesses that create jobs in Delaware, especially in high-growth sectors like technology, finance, and healthcare.

Eligibility

• Must create at least 5 full-time jobs, with a focus on high-wage positions.

• Businesses must operate in certain targeted sectors and demonstrate the long-term sustainability of the jobs.

Incentive Value

• The tax credit is worth up to $1,500 per job created, with the total value depending on the job’s wage and duration.

• The credit can be claimed for up to 5 years.

Application Process

Businesses apply through DEDO, providing evidence of job creation and wage levels.

Delaware Technology Park Tax Incentives

Overview

Delaware Technology Park offers tax incentives to businesses engaged in research and development or commercializing new technologies.  The park provides a collaborative environment for innovation in technology-driven sectors.

Eligibility

• Must be a business in the technology or research sectors, focusing on innovation or commercialization of new technologies.

• Must operate within Delaware Technology Park or another designated innovation zone.

Incentive Value

• Tax exemptions on real property taxes for up to 10 years.

• Other incentives may include grants or low-interest loans for technology development and commercialization.

Application Process

Businesses must apply to DEDO and demonstrate their innovation and potential for growth.

Conclusion

Delaware offers numerous incentives for businesses to grow, innovate, and contribute to the state’s economy.  From tax credits for job creation and R&D activities to support for energy efficiency and brownfield redevelopment, the state provides a wealth of opportunities for businesses across a wide range of industries.