Tax Advantages in Delaware
The State of Delaware has adopted a clear, bipartisan policy to attract new business and encourage the expansion of existing operations. Key tax features, which now make Delaware more competitive, include:
- No State or local general sales tax.
- No personal property or inventory taxes.
- Real property taxes are among the lowest in the country.
- Corporate income tax credits and reduction of gross receipts taxes for new and expanded businesses.
- Additional tax credits on corporate income and reduction of gross receipt taxes for new and expanding businesses locating in 30 targeted census tracts.
- Property tax relief for new construction and improvements of existing property.
- The exemption of certain investment and holding companies from corporate income tax.
- The adherence of the State tax structure to the federal definition of corporate net income so that companies may take full advantage of any federal tax law change, such as more rapid depreciation of newly purchased assets.
- Two approved foreign trade zones will allow the deferment of import taxes.
- Public Utility Tax rebates of 50% on increased consumption for qualifying industries, and reduced rate for manufacturers and agricultural processors.
- Accelerated experience ratings for new employers.
Organizations to Help Your Business
The following organizations can help you start or expand your business:
The Delaware Economic Development Office, through its financing subsidiaries, the Delaware Economic Development Authority and the Delaware Development Corporation, offers comprehensive assistance in loan "packaging" by utilizing existing State and federal programs. The Authority is skilled in generating financing options for the State's business community in conjunction with private financial institutions. By customizing a loan package for your firm, our professional staff is able to match development needs with available financial resources.
The Small Business Development Centers (DSBDC) will answer your questions about managing a small business and provide information about small business issues. The DSBDC provides information, training and free, one-on-one counseling for small business owners and those interested in starting a business. The SBDC can obtain a market feasibility study for your business. It contains data such as a detailed demographic profile of your market area and a great amount of other information.
The Delaware Manufacturing Extension Partnership (DEMEP) is a non-profit resource organization offering affordable, confidential technical and business solutions to the small and medium sized manufacturers of Delaware. DEMEP provides sound technical field agents and consultants who specialize in solving problems that are unique to manufacturers.
SCORE provides one on one counseling for small business people thinking about starting a small business and for current business owners from retired executive volunteers. The organization also offers low-cost business skills workshops throughout the state.
The Delaware Innovation Fund is a seed and early-stage venture capital firm established as a public/private sector initiative to assist Delaware companies in the critical pre-seed and early stages of formation. The fund provides financial and technical assistance to Delaware-area based businesses which have the potential to launch innovative products and processes into national markets, to create new jobs, and to make a significant contribution to the economic diversity and the technology base of Delaware’s communities.
The mission of the U.S. Small Business Administration Delaware District Office is to aid, counsel, assist and advocate the interests of the state’s small business community, utilizing various financial, investment, procurement, as well as business development programs and resources.