Delaware Code Title 30 Sec. 2094 – Tax credit application process
(a) In order to obtain a credit, certified sponsor firms and certified new business firms shall submit a joint tax credit application to the Division for the business finder’s fee tax credit on or after the anniversary of the new business certification date, which certifies the number of full-time Delaware employees that have been continuously employed by the new business firm for a period of at least 3 months prior to the date of the tax credit application.
Terms Used In Delaware Code Title 30 Sec. 2094
- Bank: means a banking organization or other financial institution engaged in the business of banking, chartered under federal or any state law, and regulated by any federal or any state banking regulatory authority. See Delaware Code Title 30 Sec. 2091
- Certified new business firm: means a new business firm that has been certified by the Director pursuant to the provisions of § 2093 of this title. See Delaware Code Title 30 Sec. 2091
- Certified sponsor firm: means a sponsor firm that has been approved by the Director pursuant to the provisions of § 2093 of this title. See Delaware Code Title 30 Sec. 2091
- Credit: means a reduction of the final balance for tax reported due by a certified sponsor firm or a certified new business firm on a tax or information return pursuant to the Business Finder's Fee Program. See Delaware Code Title 30 Sec. 2091
- Director: means the Director of the Division of Small Business. See Delaware Code Title 30 Sec. 2091
- Division: means the Division of Small Business within the Department of State. See Delaware Code Title 30 Sec. 2091
- Division of Revenue: means the Division of Revenue of the Department of Finance of the State. See Delaware Code Title 30 Sec. 502
- New business certification date: means the date the Division officially certifies the joint application of the sponsor firm and the new business firm. See Delaware Code Title 30 Sec. 2091
- New business firm: means a business organization that certifies in a joint application pursuant to § 2093 of this title that it:
- Sponsor firm: means a business organization that certifies in a joint application pursuant to § 2093 of this title that it:
- State: means a state of the United States, the District of Columbia, Puerto Rico, The United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States. See Delaware Code Title 30 Sec. 502
- Tax: shall be deemed also to refer to license fees imposed under Part III of this title. See Delaware Code Title 30 Sec. 502
(b) The certified sponsor firm and the new business firm shall identify on the joint application the tax against which each seeks to apply a credit, should said joint application be approved by the Director. Credits may be claimed against any 1 of the taxes imposed by the following provisions:
(2) Sections 702 and 703 of Title 18; or
(3) Chapter 11, 19, 23, 25, 27, 29, 43 or 61 of this title.
(c) The Division shall review and conduct due diligence to verify the employment as reported in the credit application. After such review the Director shall, within the exercise of the Director’s discretion, approve qualifying applications for a credit of $500 for each full-time Delaware employee of the certified new business firm. The Director shall submit a written authorization for each such approved application to the certified sponsor firm, certified new business firm, the Division of Revenue, and, if applicable, the Bank Commissioner and the Insurance Commissioner, indicating the amount of business finder’s fee tax credit approved for each certified sponsor firm and certified new business firm.
(d) To claim the credit allowed by this subchapter, certified sponsor firms and certified new business firms shall attach the Director’s written authorization for each approved application to the Delaware tax return against which the credit is claimed, and submit such tax return to the appropriate state tax authority. To the extent that the business finder’s fee tax credit exceeds the amount of the tax otherwise due, unused credits shall be paid to the certified sponsor firm or certified new business firm in the nature of a tax refund. Certified sponsor firms and certified new business firms shall also attach an executed nondisclosure form provided by the Division of Revenue or other taxing agency.
(e) Certified sponsor firms and new business firms are eligible for a tax credit for each of the 3 tax years from the anniversary of the new business certification date, and are not eligible for the tax credit thereafter.
77 Del. Laws, c. 300, § ?1; 70 Del. Laws, c. 186, § ?1; 81 Del. Laws, c. 49, § 19;