An Act To Amend Title 30 Of The Delaware Code Relating To Business Tax Credits And Deductions.
Summary
HB310 amends Title 30 of the Delaware Code to narrow eligibility for certain business tax incentives. The bill changes the definition of “qualified facility” so that large energy use facilities are excluded from the category of facilities that can qualify for a tax credit or license fee reduction tied to job creation and qualified investment in business facilities.
Under the bill, a “large energy use facility” is defined as a facility that uses or can use 30 megawatts or more and is primarily engaged in providing a service classified under NAICS code 518210. By carving these facilities out of the qualified-facility definition, the bill limits access to existing business tax credits and deductions for this class of high-energy operations.
Impact
The bill would amend Delaware’s business tax credit and deduction provisions in Title 30 by excluding large energy use facilities from eligibility for incentives available to qualified facilities. This affects taxpayers seeking credits or license fee reductions for employment creation and qualified investment in new or expanded business facilities, and it would likely reduce the number of projects that can claim those benefits if they meet the large-energy-use threshold.
Sentiment
The available voting history suggests the bill had meaningful support but was not unanimous, passing House third reading by a 26-12 vote. No committee transcripts are available, so there is no recorded debate to indicate broader public or legislative sentiment beyond the floor vote. The sponsor list is bipartisan, which suggests the measure had support across party lines even though a substantial minority opposed it.
Contention
The main point of contention appears to be whether large energy use facilities should remain eligible for business tax incentives intended to encourage job creation and investment. Supporters likely view the exclusion as a way to target incentives more narrowly and avoid subsidizing very large energy-consuming operations, while opponents may see it as limiting Delaware’s competitiveness for attracting or retaining major facilities. The 12 nays in the House vote indicate that some lawmakers disagreed with narrowing the incentive base.