Governor Matt Meyer ceremonially signed legislation on Wednesday establishing Delaware’s first entertainment production tax credit.
House Bill 364 (as amended) created the new benefit to encourage media production activity in the First State.
“I’m excited about the new opportunities it will create for Delawareans, especially our creatives, our young people, and our small businesses,” said State Rep. Kerri Evelyn Harris (D-Dover East), one of the bill’s sponsors.
To qualify for the credit, companies would need to demonstrate that they invested more than $100,000 in eligible activities over 12 months. Qualified companies could then receive a tax credit equal to 30% of those investments, which they could apply toward certain Delaware state taxes. Independent verification of spending would be required, along with public reporting requirements and interagency oversight.
The bill also prioritizes productions that hire Delaware residents, use Delaware businesses, and make long-term commitments to the state.
“After trailblazing this effort with HB 237 last year, I was proud to work with Rep. Harris on HB 364 to give Delaware a competitive tool to attract the film production industry,” said State Rep. Mike Smith (R-Pike Creek Valley), in photo, a prime sponsor of the proposal. “This measure is intended to bring new revenue to local businesses and create real jobs for Delaware workers. With most states already offering similar incentives, this bill ensures we stay competitive and strengthens our economy through smart, accountable economic development.”
Delaware is geographically well positioned in an existing entertainment production corridor stretching from New York south through Philadelphia, Baltimore, Washington, D.C., and Virginia. In Delaware, productions can access a variety of shooting locations, including cities, historic communities, beaches, farmland, suburbs, and commercial settings, all near one another.
Delaware hosted major aspects of the feature film Dead Poets Society in 1989. The production reportedly spent about $8 million locally during roughly 10 weeks of filming.
More recently, the state has served as a venue for productions including Beloved, Failure to Launch, and the television series Lioness, as well as commercials and smaller television productions. The new incentive is intended to turn those occasional productions into a more consistent pipeline of projects that generate long-term opportunities for Delawareans.
