Delaware groups could seek approval to support qualifying businesses

Economic development organizations may apply to run projects through a tax credit program. Projects may support technology accelerators or provide funding, job training, or other help to qualifying innovative businesses. Eligible businesses must be for-profit, based in Delaware, and mainly work in an innovative industry; they must also meet one of the employee, revenue, or ownership tests in the bill. The Division of Small Business must approve the application and set the tax credits allocated to the project. The application must include a conflict-of-interest policy, a notarized statement that the application follows it, and a detailed project plan. The text gives no start date for applications or projects.

A taxpayer may receive a tax credit for money given to a project approved under the program. The project must be approved by the Division of Small Business. The credit may offset income tax, state franchise tax, or other taxes allowed by the Division of Revenue or the Secretary of State. The credit cannot reduce a taxpayer’s tax bill by more than half in a tax year. Unused credit may carry forward for up to five years. Unused credit may carry forward for no more than five years.

The total funding approved under the program may not exceed $3 million in a calendar year. The limit applies to all funding approved under this tax credit section. The limit applies in calendar years beginning January 1, 2027.