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Note: This page is part of the Governor's News Archive, which holds press releases from January 2009 through September 2011. Since October 2011, recent news can be found in the Newsroom and archived news is available at news.delaware.gov.


March 14, 2011

New Job Creation Credit Could Reward Companies for Hiring

Expands Existing “Blue Collar Credit” to Industries Looking to Grow in Delaware

Markell to Employers: “Let us be your partner in putting people back to work.”

New Job Creation Credit

Wilmington Employers looking to add jobs will find a more active and engaged partner in Delaware’s state government under a proposal announced today that could reward companies for putting people back to work. In a store that used a more limited version of the program to help hire hundreds, Governor Jack Markell today unveiled the “New Job Creation Credit” proposal with its prime sponsors Senator Robert Marshall, House Speaker Robert Gilligan and Representative Bryon Short.

“We want to support existing employers’ efforts to expand here in Delaware. We want to keep attracting more businesses to make our state their home. This proposal would provide some help with both,” Markell said. “This effort comes from months of conversations with businesses about how we could be a better partner in building their workforce. We want what they want – more people being able to say to their families that they are back to work.”

The legislation’s introduction coincides with the expiration of the state’s former “Blue Collar Jobs Tax Credit.” The new proposal expands the number and kinds of industries available to benefit from credits, increases the size of the incentive for each job created, encourages companies in high-growth and sustainable industries to apply and makes more investments now to encourage more immediate growth.

“The Blue Collar tax credit served our state well. This proposal keeps our historic commitment to investing in blue collar jobs and expands that to include other growth industries that can put people to work,” Senator Marshall said.

Improving the state’s economy and expanding the number of Delawareans who get back to work remains a top priority, Speaker Gilligan said.

“Getting people back to work remains our focus and the single most important thing we can do to keep our state moving forward,” said Gilligan.

The credit should be a help to both small and larger businesses.

“As a small business owner, I know how critical investments like these can be to encouraging businesses to expand. Small business growth is one of the engines of economic recovery, and this effort should help accelerate that growth,” said Representative Short.

The credit should be a help to both small and larger businesses.

“As a small business owner, I know how critical investments like these can be to encouraging businesses to expand. Small business growth is one of the engines of economic recovery, and this effort should help accelerate that growth,” said Representative Short.


The bill, which will be introduced shortly in the Senate:

  • Makes permanent the best elements of the Blue Collar Jobs Tax Credits: For over 25 years, it has proven itself as an important tool to recruit and expand businesses in Delaware. The business community relies on the program and needs certainty in its planning decisions, especially because the program’s tax credits have a 10-year life. This bill provides that certainty by eliminating the program’s sunset provision.
  • Increases the size of the incentive for qualifying companies: The basic 10-year corporate and personal income tax credit amount is increased from:

    √$400 to $500 for each qualifying job, and
    √ $400 to $500 for every $100,000 of qualifying investment

  • Targets technologically advanced and environmentally smart activities: The bill advances the twin goals of enhancing manufacturing and diversifying the State’s economic base to include environmentally sustainable activities. Businesses that manufacture clean-energy systems, such as wind, solar and fuel cells, will be at the forefront of a 21st century economy and, under this proposal, will receive 50% higher income tax credits and a lower gross receipts tax rate.
  • Saves money by better targeting credits: The bill establishes a 3-year application deadline for the credits. The money saved as a result of this more appropriate deadline is used to offset the cost of the larger tax credits. The upshot is that the bill is revenue neutral.

The proposal was unveiled at a Shoprite in Wilmington, just outside of Senator Marshall’s district, in front of employees who were hired because of help from the expiring Blue Collar credit and many of the customers that business now serves.

“The assistance offered by the Blue Collar Tax credit helped put people to work building this store and getting it opened and running,” said Bernie Kenny of ShopRite. “We now have about two hundred employees in this location alone, which serves thousands of Delawareans a week. This expanded approach should help other business owners decide to invest in their own growth as well.”


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Last Updated: Monday, 05-Aug-2013 15:26:13 EDT
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