The Blue Collar Job Act provides eligible businesses that (1) are engaged in a qualified activity (listed below); (2) hire five or more qualified employees; and (3) make an investment of at least $200,000 ($40,000 per qualified employee) in a qualified facility, tax credits against corporate or personal income taxes, gross receipts tax, and public utility tax.
- Manufacturing;
- Wholesaling;
- Scientific, agricultural or industrial research, development or testing;
- Computer processing or data preparation or processing services;
- Engineering services;
- Consumer credit reporting services, including adjustment and collection services and credit reporting services;
- Aviation services;
- Non-custom computer software;
- Telecommunications services;
- Any combination of the activities described above; or,
- The administration, management or support operations (including marketing) of any activity described above
These credits may be taken during the tax year in which the qualified facility is placed in service, and for any of the nine following years. The aggregate amount of credits claimed in any given year may not exceed 50% of the firm's tax liability.
Businesses that are not subject to the corporate income tax (e.g., pass through entities such as S-Corporations) are entitled to use the credits against personal income tax by attaching Form 700, Business Tax Credits to their Delaware Resident or Part-Year/Non-Resident Personal Income Tax return of shareholders/partners/sole proprietors
How do I get it?
Approval by the Division of Revenue must be granted before a corporation can claim the Blue Collar tax credits.
To apply, file Form 402AP 9901 Application for New Business Facility Tax Credits with the Delaware Division of Revenue. The Division will notify all applicants in writing if the application is approved or disapproved.
A separate Form 402AP 9901 must be completed for each new or expanded facility.
For more information: Blue Collar Job Act (Full view)