Delaware would offer tax credits to qualifying power plants

Delaware would give eligible operators a $4 corporate tax credit for each megawatt-hour of electricity their plants produce. Up to three fully operating Delaware plants using gas and steam turbines could qualify. Each must have 100 to 500 megawatts of capacity and deliver electricity to Delaware customers through the regional grid or a local power network. Plants must use natural gas, hydrogen, or landfill gas, reach at least 50% efficiency, and hold all required permits and licenses. Plants must enter service between January 1, 2027, and January 1, 2038. Their credits would apply for 10 years after commercial operation begins.

Delaware would give qualifying plants an extra $1 credit per megawatt-hour for each listed site or technology feature. These bonuses apply to plants that qualify for the basic credit. The site bonus applies to an industrial site that may need cleanup, a current power plant site, or a former power plant site that shut down within 10 years before construction starts. The other bonuses require at least 55% efficiency or technology that captures carbon emissions.

Operators could carry unused credits forward or transfer them to others. These rules cover operators of plants that qualify for the basic credit and any bonuses. Each plant’s operator could receive no more than $15 million in basic and bonus credits in any tax year, including credits sold or transferred. Operators must send yearly production and efficiency reports to the Public Service Commission to stay qualified. Unused credits could be carried forward for up to 10 years. Credits could be sold or transferred during a 10-year period.