Tax Incentives & Financing in Delaware

Learn about Delaware’s tax incentives, corporate financing and personal tax credits s supporting jobs and business growth in Delaware. Incentives Incentives Incentives 2 nd Best Business Environment ( News and World Report 2024) 2 nd Best Combined Effective Corporate Tax Rate for New Firms (KPMG/Tax Foundation 2021) No Value Added Taxes Tax Incentives & Financing in Delaware Supporting business growth isn’t just a priority in Delaware, it’s built into the way we operate every day. The absence of a state sales tax is Delaware’s most powerful incentive, offering immediate savings that businesses and residents benefit from 365 days a year. This unique advantage lowers operating costs, boosts purchasing power, and creates a strong foundation for organic growth. Combined with a wide range of tax credits, Delaware offers an environment where companies can thrive locally while competing on a global scale. Cost of Doing Business in Delaware For a business to flourish, location is critical. Delaware  has no sales tax, no inventory tax, and no value-added tax. With more than 1.9 million business entities from around the world calling Delaware their legal home—including two-thirds of Fortune 500 companies – when you choose Delaware, you’re in good company. Quick Links Delaware Division of Revenue DSB Incentive Transportation Infrastructure Investment Fund (TIIF) Site Readiness Fund EDGE 2.0 Grant Delaware Financing and Funding Options Delaware Prosperity Partnership can help identify potential incentives and funding options available to support businesses looking to grow, expand and relocate to Delaware. Some of the financing programs attracting businesses to the First State include the following: Delaware Strategic Fund (Grants and Loans) The Delaware Strategic Fund is the primary funding source supporting businesses with expansion, retention and relocation of businesses to the state of Delaware. For more information on the process please contact Becky Harrington at bharrington@ In addition, the Division of Small Businesses may also offer low-interest loans may also be offered to projects on commercially contaminated/worn locations such as Brownfield sites. For more information please click here. Site Readiness Grants The Site Readiness Fund provides grants, loans or other economic assistance to qualified businesses or local governments that invest in constructing, renovating or improving commercial, industrial sites that are readily available to new businesses, established businesses that are considering moving to the state or existing businesses within the state that need additional sites to remain or expand in Delaware. Preference to properties and projects that align with the State’s Strategy Investment Levels 1, 2, and 3.  State Investment Level Map. For more information and the application please click here . Transportation Infrastructure Investment (TIIF) Managed by the Transportation Infrastructure Investment Fund Council, this fund allows businesses to make roadway infrastructure improvements that will support job-creating projects in Delaware. The council will consider applications and make funding recommendations to Delaware’s Transportation Secretary and the Secretary of State. For more information and the application please click here Graduated Lab Space Grants Target early stage and small to medium-sized companies that are growing out of their existing space in Delaware, as well as similar companies from outside of the state which are considering relocating or expanding to Delaware. For more information on the application process please contact Noah Olson,  [email protected] . Workforce Training Grants The State of Delaware offers matching up to $100,000 per project. For more information please click here . EDGE 2.0 Grants (Encouraging Development, Growth & Expansion)