Delaware state lawmakers are fast tracking a bill renewing tax credits for businesses – mostly as part of their incentive package to Dow and DuPont to land two of their spin off companies following a planned merger.
Gov. Jack Markell (D) and other top state officials blitzed Dow and DuPont executives after they announced their plans to merge into one chemical industry behemoth late last year.
But as part of that plan, Markell promised them tens of millions of dollars of tax credits, economic development grants and other pots of money to maintain a presence in Delaware.
That plan worked, with Dow and DuPont revealing they’d keep the agricultural and specialty products spinoffs in the First State.
Legislators are now rolling through the formality of passing bills to keep those promises. The Senate unanimously approved two tax credits Thursday: one aimed at research and development and another for companies headquartered in Delaware.
“We’re taking that one step further, and for companies that have a unique restructuring within the state and decide to stay here, then they can actually qualify for the credit by retaining jobs,” said Finance Secretary Tom Cook.
Cook says in order to qualify, companies would have to keep at least 50 employees earning more than $110,000 a year, or more than 200 workers averaging $70,000 in their salaries.
The bill now needs House approval, which is expected to come swiftly. Lawmakers passed an earlier part of the incentive package in January that lowered corporate taxes.