Delaware2025Passed Legislature
HS1FORHB211
Innovate Delaware Tax Credit Program
Last scannedAug 24, 2026, 10:01 AM
In one sentence
This law creates a program that gives tax credits to taxpayers who donate money to approved projects supporting early-stage technology companies and accelerators in Delaware.
What it does
- Creates the Innovate Delaware Program for Economic Development Organizations to apply for funding through the Division of Small Business.
- Sets a yearly limit of $3 million on total tax credits available starting January 1, 2027.
- Requires approved organizations to submit annual reports and economic impact data to the Division of Small Business.
- Limits how much a taxpayer can reduce their bill using this credit to no more than 50% in any taxable year.
Who it affects
- Economic Development Organizations that apply for the program
- Small technology companies with fewer than 15 employees or those owned by women, minorities, veterans, service-disabled veterans, or people with disabilities
- Taxpayers who donate money to approved projects and receive tax credits
- The Division of Small Business and the Secretary of State
Limits and unknowns
- The total amount of funding approved cannot exceed $3 million in any calendar year starting January 1, 2027.
- Unused tax credits can only be carried forward for up to five years after they are earned.
- A taxpayer's bill cannot be lowered by more than half using this specific credit.
Plain language
Terms to know
- Accelerator
- A company that, for a fixed term, funds, educates, mentors, trains, or provides support services to early-stage technology companies in Delaware.
- Economic Development Organization
- A nonprofit organization approved by the Division of Small Business that is charged with improving the state's economy and has a record of supporting economic development.
- Innovating Delaware Tax Credit (IDTC)
- A tax credit allowed to taxpayers who give funds to projects approved under this program, which can be used against income taxes or franchise taxes.
Official record
Sources
Official summary
AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO THE INNOVATING DELAWARE ACT.