This Amendment to HB 364 does the following: (1) Removes the term "projects" from those activities considered qualified activities.

Labor Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Harris
Last action: 2026-06-11
Official status: Stricken 6/11/26
Effective date: Not listed

Plain English Breakdown

The official status shows the amendment was stricken on June 11, 2026. This means it did not pass in this form.

Amendment Changing Rules for HB 364 Tax Credits

This amendment changes rules by removing the word 'projects' from qualified activities, lowering spending limits to $100,000, updating tax withholding for loan-out companies, and setting a first-come-first-served order for awarding credits.

What This Bill Does

Removes the term "projects" from the list of activities considered qualified activities.
Decreases the minimum spending amount needed to get a tax credit from $500,000 to $100,000.
Updates rules so production companies must withhold 6% income tax on payments made to loan-out companies for work done in Delaware.
Requires that tax credits be awarded based on who applies first while following set priorities.

Who It Names or Affects

Production companies seeking tax credits
Loan-out companies with employees performing services in Delaware

Terms To Know

Qualified activities: Work or tasks that meet the rules to receive a benefit, now without requiring them to be called "projects."
Loan-out company: A business whose employees perform services in Delaware for another company.

Limits and Unknowns

The amendment was stricken (removed) from the House on June 11, 2026.
No effective date is listed because the bill did not pass all steps to become law in this version.

Bill History

2026-06-11 Delaware General Assembly
Stricken in House
2026-05-19 Delaware General Assembly
Introduced and Placed With Bill

Official Summary Text

This Amendment to HB 364 does the following:
(1) Removes the term "projects" from those activities considered qualified activities.
(2) Decreases the minimum expenditure amount for tax credit eligibility from $500,000 to $100,000.
(3) Updates the provision relating to loan-out companies and tax compliance to provide administrative clarity.
(4) Requires credits to be awarded on a first-come-first-served basis and in accordance with the priorities outlined in the Act.

Current Bill Text

Read the full stored bill text

Legislation Document

SPONSOR:

Rep. Harris

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE AMENDMENT NO. 1

HOUSE BILL NO. 364

AMEND House Bill No. 364 on line 22 by deleting “

projects,

” as it appears therein.

FURTHER AMEND House Bill No. 364 on line 73 by deleting “

$500,000

” as it appear therein and inserting in lieu thereof “

$100,000

”.

FURTHER AMEND House Bill No. 364 by deleting lines 95 through 104 in their entirety and inserting in lieu thereof the following:

“

A production company or its authorized payroll service company shall withhold Delaware income tax at the rate of 6% on all payments to loan-out companies for services performed in Delaware by the loan out company's employees and shall deposit such amounts with the State of Delaware. The amounts so withheld shall be deemed to have been withheld by the loan-out company on wages paid to its employees for services performed in Delaware and shall be allocated to the loan-out company’s employees in proportion to the payments made by the loan-out company to its employees for services performed in Delaware. For purposes of this chapter and notwithstanding any other provision in this chapter to the contrary, loan-out company nonresident employees performing services in Delaware shall be considered taxable nonresidents and shall be subject to income taxation in the taxable year in which the loan-out company's employees perform services in Delaware.

”.

FURTHER AMEND House Bill No. 364 by deleting lines 188 and 189 in their entirety and inserting in lieu thereof the following:

“

Division of Small Business, shall award credits on a first-come-first-served basis and in accordance with subsection (b) of this section.

”.

SYNOPSIS

This Amendment to HB 364 does the following:

(1) Removes the term "projects" from those activities considered qualified activities.

(2) Decreases the minimum expenditure amount for tax credit eligibility from $500,000 to $100,000.

(3) Updates the provision relating to loan-out companies and tax compliance to provide administrative clarity.

(4) Requires credits to be awarded on a first-come-first-served basis and in accordance with the priorities outlined in the Act.