DELAWARE INCENTIVES 

Delaware shows an average deal value of $2.23 million with 121 new jobs created per deal

DELAWARE STRATEGIC FUND

The Delaware Strategic Fund represents the primary funding source used by DEDO to provide low-interest loans and grants to businesses located or looking to relocate to the State of Delaware.  Through the Strategic Fund, a business can gain access to capital to help grow its workforce, augment working capital, acquire new machinery and equipment, and assist with relocation costs.  Customized financing is designed to meet job creation, expansion and relocation needs.  Businesses that demonstrate the potential to create employment opportunities for Delawareans are eligible to apply.

CORPORATE INCOME TAX CREDITS

Businesses within targeted industries qualify for corporate income tax credits of $400 for each new employee and $400 for each new $100,000 investment. Firms within targeted industries who also locate in a targeted area qualify for $650 for each new employee and $650 for each new $100,000 investment. Firms must invest a minimum of $200,000 and create a minimum of five new positions.

RESEARCH AND DEVELOPMENT TAX CREDITS

Businesses within targeted industries qualify for corporate income tax credits of $400 for each new employee and $400 for each new $100,000 investment. Firms within targeted industries who also locate in a targeted area qualify for $650 for each new employee and $650 for each new $100,000 investment. Firms must invest a minimum of $200,000 and create a minimum of five new positions.

NEW ECONOMY JOBS PROGRAM

The New Economy Jobs Program is designed to provide an innovative tool to bring high-wage jobs to Delaware and make the state more competitive. The legislation provides businesses up to a 65% rebate on withholding taxes. To qualify, an employer must add at least 50 net new jobs for new Delaware taxpayers with each having an annual salary of at least $100,000.

PUBLIC UTILITY TAX REBATES

Firms meeting the criteria for targeted industry tax credits are eligible for a rebate of 50% of the public utilities tax imposed on new or increased consumption of gas and electricity for five years. The public utilities tax rate is 4.25%. The utility tax on the consumption of electric by licensed manufacturers and food or agribusiness processors is reduced from 4.25% to 2%. Additionally, electric consumed in the manufacturing of automobiles is exempt from the utility tax.

OTHER DELAWARE INCENTIVE PROGRAMS

  • Brownfield Assistance Program
  • Delaware Capital Access Program
  • Delaware Rural Irrigation Program
  • Small Business Innovation Research
  • Renewable Energy Facilities Revolving Fund
  • Delaware Technical Innovation Program
  • State Small Business Credit Initiative
  • National Emergency Grants
  • Alternative Investment Credit for Telecommunications Services and Banking
  • Gross Receipts Tax Credit
  • Business Finder’s Fee Tax Credit
  • Tax-Exempt Bond Financing
  • Job Creation Tax Credit
  • Clean Energy Technology Device Manufacturer’s Tax Credit
  • Veteran’s Opportunity Tax Credit
  • Sussex County Business Incentive Program
  • Workforce Training Grant
  • Blue Collar Training Grant