August 12, 2011|
In 2010 a Delaware Senate bill was introduced that would have eliminated the Blue Collar Job Tax Credit. The Blue Collar Credit is a state tax credit that benefits certain qualified activities, including manufacturing and wholesaling. This tax credit has rewarded many of our clients for their growth within Delaware. Knowing how much our clients have benefited from this credit, Faw Casson formed a coalition of interested parties to work with State agencies and many legislators to draft a bill that would continue the benefits to the existing industries as well as include added benefits to the Clean Energy industry. "This tax credit has rewarded many of our clients for their growth within Delaware." The credit continues to be available for all the same qualified activities but now includes increased benefits to manufacturers and wholesalers in the clean energy industry. Many of the credit requirements remained unchanged: • minimum of $200,000 in qualified assets to be placed in service, • minimum of 5 full-time employees, • benefit period of 10 years, • credit against income tax and gross receipts tax, • credit flows through to partners/shareholders of "pass-through" entities, • exceptions for companies that expand assets more than $1 million, and • additional benefits for companies expanding in State designated "targeted areas". Changes effective with the new legislation: • 25% increase in dollar benefit per "unit" (asset and employee), • 36 month window to file for the credit (previously unlimited), and sunset provision was removed. The removal of the sunset provision in the code will allow companies to plan for expansion without having to worry about the credit ending before a project is complete. The credit is a great way for the State to attract companies to Delaware as well as benefit existing companies that are looking to expand. Faw Casson can assist your Company in evaluating if this credit will benefit you. For additional information about the credit and to see if you qualify, call Kim Fonda (302-674-4305) or send an email to firstname.lastname@example.org.