In the article “Delaware Vows to Alter Tax Code After Deal to Retain DuPont” by Leslie A. Pappas, Zerbe weighs in on the recent tax code changes the state has made to entice companies to invest in research and relocate their businesses to Delaware. Praising Delaware’s decision to remove its statewide $5 million cap on its existing research and development tax credit, and instead making the credit refundable so that companies can get their the full value of their credit, Zerbe notes that these and other tax code changes will be important in attracting companies to the state in the future.
Delaware is smart to change the policy for all companies rather than create a “special window” or a limited “rifleshot” policy that caters only to a single corporation, said Dean Zerbe, National Managing Director of alliantgroup LP, a company that helps companies take advantage of state and federal tax policies.
About 40 other states offer research and development tax credits, Zerbe told Bloomberg BNA [on] Feb. 22. Only a handful make the credit refundable, he said.
Delaware’s ability to pull a strong bipartisan proposal together quickly probably worked to the state’s advantage, he said. “Smaller states in particular can be adroit at that,” Zerbe said. “Anyone would be impressed with that kind of quickness.”
Contact us today for more information on Delaware’s state R&D Tax Credit and what these tax code changes will mean for Delaware state businesses.