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 Division of Small Business is responsible for promoting and supporting economic development by offering resources and programs which assist entrepreneurs and business owners in starting, expanding, or sustaining their businesses. The Division also works with the Delaware Prosperity Partnership to attract new business to the state to continue to bolster the state economy. The office prioritizes supporting small businesses as well as businesses owned by women, minorities, and veterans. The Division works collaboratively with several other state agencies as well as private organizations to promote and encourage economic development.
The Delaware Prosperity Partnership (DPP) was created as a private entity to lead the state of Delaware's economic development efforts. Establishment of this private entity was a critical step to enhance the state's ability to attract, grow and retain companies; to build a stronger entrepreneurial and innovation ecosystem; and to support private employers in identifying, recruiting and developing talent. This initiative brings together the resources, commitment, and energy of both public and private sectors charged by the General Assembly with certain tasks related to economic development. As we face a more competitive environment between states and intense global competition for businesses, the DPP will provide the strategic direction for Delaware's economic development activity by tapping private sector expertise and resources to work in conjunction with the state. https://www.livelovedelaware.com/
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 free one on one counseling for existing small businesses looking to improve their bottom-line performance as well as new entrepreneurs just getting started. Business skills workshops are offered live across the State in addition to no cost online workshops and tools offered through our web portal.
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.