Delaware Economic Overview
An Efficient Business Climate that Delivers Proven Results
Delaware is home to a highly attractive economic environment where today’s companies excel. Here, we merge an accessible and willing government with a low cost of doing business and powerful legal, governing, and corporate tax regulations that make Delaware one of the best place to incorporate your business and strategically position your company.
Low Costs, High ROI
Ranked America’s No. 6 Business Environment by U.S. News & World Report
With Forbes ranking Delaware as the state with the second-lowest business costs in America, our state is a game-changing location for companies choosing to operate on the East Coast. Delaware’s cost of doing business is 25 percent below the national average. In a high-cost region like the Northeast, that makes a big difference―just ask companies like FMC Corporation, JPMorgan Chase and Chemours.
The Complete Package
Delaware’s Business Tax Climate Balances Perfectly with Our Premier Legal and Regulatory Environment
Delaware is an excellent state for business taxes. The state has no sales tax, no personal property tax, no inventory tax, and no value-added tax (VAT). Delaware has a corporate income tax rate of 8.7%―one of the more competitive rates in the Mid-Atlantic―and transitioned to single sales factor apportionment, which rewards companies for investing in Delaware and reduces the tax liabilities of businesses that have significant property and payroll in the state. Thanks to this and our other pro-business advantages, more than a million businesses, including Fortune 500 companies like AT&T, Bank of America, Coca-Cola and Wal-Mart, have chosen to incorporate in Delaware.
Benefits of Incorporating in Delaware
The Nation’s Second Smallest State Punches Above its Weight in Business Incorporations
Forming a business in Delaware is easy thanks to two important factors:
- Favorable Tax Structure: Ranked among the top tax systems in the U.S., Delaware’s tax laws and regulations support the development of fast-growing companies.
- Corporate Law Experience: Founded in 1792, the Delaware Court of Chancery is one of the most respected chancery courts in the nation, with considerable expertise in adjudicating some of the most nation’s most significant corporate legal cases.
Delaware has the 4th-highest concentration of employed science, engineering, and health PhD’s in the nation.
No matter what type of worker you’re looking for, you’ll find it in Delaware’s workforce. Located at the center of more than 100 universities, medical schools, community colleges and highly respected Ivy League institutions, Delaware has one of the nation’s most educated, diverse and talented workforces.
Our high concentration of major research labs, research-intensive businesses and research universities also drive the skillsets of Delaware talent and employers, leading Delaware to have the nation’s highest concentration of chemists, chemical engineers, and chemical technicians in the nation.
Delaware Strategic Fund
Purpose
Delaware offers performance grants to projects that advances the economy significantly through job creation, expansion, and relocation of businesses to the state. For more information on the Delaware Strategic Initiative Fund and application process please contact Becky Harrington, bharrington@choosedelaware.com.
In addition, the Division of Small Business may also offer low-interest loans to projects on commercially contaminated/worn locations such as Brownfield sites. For more information please click here.
Site Readiness Grants
Purpose
The purpose of this incentive program is to ensure Delaware has development site options that will allow communities to compete for investment and job creation opportunities (by new or existing employers). The aim is to help cultivate a “portfolio of properties” that are ready (or near ready) for development. Applicants can be a private landowner, equitable owner/developer, public entity such as a county or municipality, or utility provider that is developing property or providing necessary services for an area, industrial or business park. Funds are reserved for industrial or office projects. 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 Fund (TIIF)
Purpose
TIIF was established to allow businesses to make roadway infrastructure improvements that will support job-creating projects in Delaware. The fund is managed by the Transportation Infrastructure Investment Fund Council, a nine-member council established by the legislation. The council will consider applications and make funding recommendations to Delaware’s Transportation Secretary and the Secretary of State. For more information on the application process please click here.
Graduated Lab Space Grants
Purpose
The purpose and spirit of this incentive program is to create more “ready-to-go” lab space for companies growing out of space that hampers their ability to continue thriving in Delaware. Targeted companies include 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. The Agreement will be structured so that both the company receiving the grant and the space owner/lessor are parties to ensure that: 1) the company remains operating in the state for a period of five years; and 2) the owner maintains the improved space as a community asset for the same length of time, regardless of whether the Company Grantee leaves before the end of the five-year term. Eligible applicants may apply for a grant of up to 33% of the fit-out or building costs for the lab space portion of the space (at a rate of up to $150/ft, for a space of up to 50,000 sq ft per company). For more information on the application process please contact Noah Olson, nolson@choosedelaware.com.
EDGE Grants (Encouraging Development, Growth & Expansion)
Purpose
Through a competitive award process, businesses can receive up to $25,000/$100,000 in matching grants to put toward a wide range of eligible expenses. Grants up to $25,000 for Entrepreneur Class and up to $100,000 for STEM Class. The funds are intended as a $3 (state) to $1 (business) match. The Division can award up to 15 grants per application round (5 STEM/10 Entrepreneur). For more information on EDGE grants, please click here.
Ranked among the Mid-Atlantic’s Top Three Most Affordable States
With a significantly lower cost of living than our Eastern Seaboard neighbors, Delaware is one of the East Coast’s best states to live in. Here, Delaware residents enjoy a median household income 8 percent higher than the national average, high wage job opportunities in lucrative industries and a low tax burden without state-level property taxes and sales tax.
No matter what your lifestyle, in the First State we believe that you, your family and your employees should have a first-rate choice of where to live.