DELAWARE INCENTIVES SUMMARY

Delaware Strategic Fund (DSF)
The DSF is the primary funding source in Delaware to provide low-interest loans and grants to businesses for job creation, relocation, expansion and brownfield redevelopment. Funding appropriated to the DSF by the General Assembly shall be used when projects: are consistent with state economic development strategies, create or retain jobs, are in a competitive situation with other states, provide quality jobs considering average wage and benefits, comparative overall economic impact on the state and local economies, are feasible, and are considerate of the environment.

Brownfield Assistance Program
The program is funded through the Delaware Strategic Fund and offers up to $1 million annually in matching funds to assist with investigation and remediation of brownfield sites.

New Economy Jobs Program Credit
Allows for eligible companies that create at least 50 new jobs with an annual salary of at least $100,000. The amount of the tax credit is equal to up to 40 percent of the withholding tax of the new employees. The tax credit may increase for new jobs created in targeted growth zones, incorporated municipalities, and former brownfield sites. The maximum tax credit per year is equal to 65 percent of withholdings.

Job Creation Tax Credit
Companies that hire five or more qualified employees, make a capital investment of at least $200,000, and apply within three years after the facility is placed in service may receive tax credits against corporate or personal income taxes, gross receipts tax, and public utility tax. The credit is equal to $500 for each qualified employee and $500 for each $100,000 invested. The aggregate amount of credits claimed in a year may not exceed 50 percent of the tax liability. Credits may be carried forward for nine years.

New Business Facility Tax Credit
Provides tax credits of $500 for each new job created and $500 for each $100,000 of qualified capital investment. Tax credits increase to $750 for each new job created and $750 for each $100,000 of qualified capital investment for projects locating in targeted areas or for facilities located on a brownfield site. The tax credit increases to $900 per job created and $900 for each $100,000 of qualified capital investment for facilities located in a targeted area and a brownfield site.

Customized Training Grants
Offers matching grants of up to $100,000 to assist employers in providing customized training to employees. The type of industry, its potential impact on the state economy, the type of training requested and the availability of other training resources are all factors used to determine the amount of the training grant. Companies select the trainer and maintain total control of the training program.