State leaders hope new tax credits will attract research and development - Delaware


Mar. 4, 2016 12:29 pm

State leaders hope new tax credits will attract research and development

In wake of the DuPont merger, lawmakers introduced the Delaware Commitment to Innovation Act to bring new R&D to the state. It may have even persuaded two DowDuPont spinoffs to stick around.

Let's hear it for tax credits.

(Photo by Flickr user John Morgan, used under a Creative Commons license)

In a bipartisan effort, leaders from the state House and Senate introduced the Delaware Commitment to Innovation Act Wednesday. If passed, the act will do two things concerning tax credits to spur innovation and job growth in the state.

First, it’ll remove the annual $5 million expenditure cap for research and development tax credit, something only two other states have in place. Offering a full R&D tax credit — which would be about half the value of a company’s federal R&D credit — is expected to attract both startups and companies looking to expand research efforts.

Second, the bill modifies the New Economy Jobs tax credit to create an incentive for companies to bring their global corporate headquarters to Delaware. That means they’ll receive a tax credit based on the value of their total income tax withholding payments to Delaware.

The governor’s office said this bill has been a big part of what persuaded DuPont to locate two of its post-merger spinoff companies in Delaware. Gov. Jack Markell said the proposed reforms will save and create jobs in the state, and several others agreed.

“This will encourage businesses that are in the early stages of development to invest and locate here,” said House Speaker Pete Schwartzkopf (D-Rehoboth). “We can become a major hub for research and development.”

House Minority Leader Danny Short (R-Seaford) said that because of DuPont’s merger with Dow — and its subsequent effect on Delaware’s economy — the First State needs to create a new economic niche. “This legislation, which will encourage research and development on the macro and micro levels, is a step in the right direction,” Short said.

Companies: DuPont
People: Jack Markell
Already a member? Sign in here
Connect with companies from the community
New call-to-action


How Delaware is legislating workforce development

New license? Share the news from the DMV’s new ‘Safe Selfie Zones’

Port of Wilmington expansion expected to create thousands of jobs



Verizon is looking for the brightest ideas on how to use its 5G technology

New Castle

Wilmington University

Web Developer (Full-Time)

Apply Now
Philadelphia OR Baltimore

Technically Media Editorial Intern (Fall 2019)

Apply Now

Young Conaway

Entry-Level Corporate Legal Administrative Assistant

Apply Now

What’s the deal with Delaware’s new Angel Investor Job Creation and Innovation Act?

Are you one of the 200,000 Delawareans with compromised Facebook data?

With VR tour Delaware 360, tourism goes high tech



Escape the August heat with cool AI tech


Tech Solutions Inc

NOC (Network Operations Center) Technician

Apply Now


Analyst, Recruiting Coordinator

Apply Now
Malvern, PA


Senior Front End Engineer – CX Journey Lab

Apply Now

Sign-up for daily news updates from Delaware

Do NOT follow this link or you will be banned from the site!