Dover, Del. (July 15, 2021) – The Delaware Division of Small Business and Office of Management and Budget (OMB) announced today the launch of a Market Pressure Relief Fund designed to assist state contractors facing increased costs for construction materials due to the pandemic.

The fund will provide adjustment reimbursements for non-transportation construction materials purchased from January 1 through July 31, 2021. General contractors who have a contract with the state resulting from a formal procurement can apply for assistance from the fund.

“While we have made significant strides against COVID-19 thanks to the availability of the vaccines, we know many of our state’s businesses continue to face financial challenges as a result of the pandemic, including many of the vendors who do business with the State of Delaware who were forced to acquire construction materials at significantly higher prices earlier this year,” said Gov. John Carney. “We are hopeful this fund will provide some much-needed relief to our state contractors.”

“Throughout the pandemic, the Division of Small Business has looked for ways to help our small businesses recover financially by listening to their concerns and creating valuable solutions,” said Division Director Jordan Schulties. “We are pleased to launch the Market Pressure Relief Fund with OMB to provide another tool our state contractors can use to help offset the increase in costs for construction materials experienced during the health crisis.”

“Our office has heard concerns from state contractors about the increased cost of construction materials throughout the pandemic,” said Dean Stotler, Director of Government Support Services at OMB. “Working closely with the Division of Small Business, we were able to create this new fund to help take some of the burden off those businesses. I encourage contractors to take advantage of this opportunity and apply for assistance from the relief fund.”

Beginning Monday July 19, contractors can download the application for the Market Pressure Relief Fund on the Division of Small Business’ website at www.delbiz.com. Completed applications can be emailed to business_finance@delaware.gov. The deadline to apply for funding is September 30, 2021. Additional information and eligibility requirements for the relief fund can be found at www.delbiz.com.

Refundable tax credit to encourage job creation, innovation

WILMINGTON, Del. – Qualified investors and high-tech small businesses can now make use of Delaware’s newest program aimed at encouraging job creation and innovation.

The Delaware Division of Small Business began Thursday accepting certification applications for the Angel Investor Tax Credit (AITC) at www.business.delaware.gov/incentives.

“We are excited to have the Angel Investor program up and running,” said Governor John Carney. “Now the state’s most cutting-edge small businesses can connect with much needed sources of capital investment. The influx of funds Angel Investor will create will help these companies and Delaware’s new economy to grow.”

Once a business or investor has submitted a certification application, the Division begins its review process. In January, certified companies and investors will be able to submit credit allocation requests.

“Angel Investor is a great way for the state to spur economic development and another useful tool for our Division as we work to help small businesses succeed in Delaware,” said Damian DeStefano, Director of the Division of Small Business.

The AITC is a refundable tax credit worth up to 25 percent of the investment in a qualified, Delaware-based company. Those businesses must pay decent wages, employ fewer than 25 people and engage in innovation in one of several areas as its primary business activity. More information on investor and business qualifications is also available at www.business.delaware.gov/incentives.

“Delaware’s new angel investor tax credit is a win/win for high-tech and science start-ups as well as investors. Delaware is home to some of the nation’s most innovative start-ups and now with Delaware’s new Angel Investor Tax Credit, science and high-tech entrepreneurs have even more incentive to choose Delaware to grow their businesses,” said Kurt Foreman, President and CEO of Delaware Prosperity Partnership.

“Growing entrepreneurial startups is a key success factor for the growth of the life sciences industry in Delaware,” said Helen Stimson, President and CEO of Delaware BioScience Association. “Having an Angel Investor Tax Credit program improves our competitiveness for entrepreneurial retention. Coupling the program with our unique technical grant writing support from the SBDC, and Delaware’s very attractive R&D tax credit program creates a strong value proposition for why startups should stay in Delaware.”

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Related news:
Governor Carney Signs Angel Investor Job Creation and Innovation Act

New law establishes a refundable tax credit for qualified investors in Delaware small businesses

NEWARK, Del. – Governor John Carney on Thursday signed into law House Bill 170, the Angel Investor Job Creation and Innovation Act, at the Delaware Technology Park at the University of Delaware’s STAR Campus.

The Angel Investor Job Creation and Innovation Act establishes a refundable tax credit for qualified investors in Delaware small businesses to spur job creation and innovation. The law establishes guidelines for awarding a tax credit worth up to 25 percent of the investment in a qualified, Delaware-based small business. Businesses receiving the investment must pay decent wages, employ fewer than 25 employees, and engage in innovation in one of several areas as its primary business activity.

“We should do everything we can to support Delaware’s innovators and entrepreneurs who are leading Delaware’s new economy, and this law will help connect our most talented entrepreneurs with the resources they need to be successful,” said Governor Carney. “Delaware is already a hub of innovation, and this tax credit will help to encourage investments in innovative, Delaware-based small businesses.”

Governor Carney called for passage of the Angel Investor Job Creation and Innovation Act in his 2018 State of the State Address. The bipartisan legislation was sponsored by Representative Michael Ramone, Representative Bryon Short, Representative Melanie George Smith, and Representative Dave Wilson. Senate sponsors included Senate President Pro Tem David McBride and Senator Cathy Cloutier.

“As a prime sponsor of the Angel Investor Act, I know that by enacting this legislation we are taking a significant step in helping to strengthen Delaware’s economic development climate,” said Representative Michael Ramone. “Getting to this point today was certainly a collaborative effort by legislators, the Governor, and the small business community, and one that I believe will result in definite job growth in Delaware.”

“By encouraging investment in technology startups, Delaware is making another strategic move to enhance its economic competitiveness. It is painstaking and difficult work to advance a startup and this new program will provide an infusion of capital to businesses at a critical time,” said Representative Bryon Short. “These resources will foster innovation in our state and support entrepreneurs growing their businesses.”

“We believe that keeping innovation created in Delaware in the state is a key component of future success for the life sciences industry,” said Helen Stimson, President and CEO of Delaware BioScience Association. “We are delighted to have this new Angel Investor Tax Credit program to entice investors to support our startup companies. This benefit coupled with Delaware’s attractive R&D tax credit program provides key benefits needed to keep our innovators in the state.”

“As a longtime advocate and mentor of early stage technology-based businesses, the Angel Investor Tax Credit should be a stimulus for new investors to support entrepreneurs in Delaware,” said Michael Bowman, Associate Director of the University of Delaware’s Office of Economic Innovation and Partnerships, and President of the Delaware Technology Park.

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Details about the Angel Investor Job Creation and Innovation Act:

The Angel Investor Job Creation and Innovation Act establishes guidelines for awarding a tax credit worth up to 25 percent of the investment in a qualified, Delaware-based small business. Businesses receiving the investment must pay decent wages, employ fewer than 25 employees, and engage in innovation in one of several areas as its primary business activity. By statute, the Delaware Division of Small Business will have until November 1, 2018 to create and publish an application for small businesses looking to participate in the program in calendar year 2019.

Qualified business activities include:

• Using proprietary technology to add value to a product, process, or service in a qualified high-technology field.
• Researching or developing a proprietary product, process, or service in a qualified high-technology field.
• Researching, developing, or producing a proprietary product, process, or service in the fields of agriculture, manufacturing, wildlife preservation, environmental science, financial technology, or transportation.
• Researching, developing, or producing a new proprietary technology for use in the fields of agriculture, manufacturing, financial technology, or transportation.