2021 Delaware Code
Title 30 - State Taxes
Chapter 20. Business Tax Credits and Deductions
Subchapter X. Business Finder’s Fee Tax Credit
§ 2091. Definitions.
As used in this subchapter:
(1) “Affiliate” means any business organization or person that directly, or indirectly through 1 or more intermediaries, controls, or is controlled by, or is under common control with, the person or business entity specified, or person who is an officer, director, partner, or trustee of the person specified.
(2) “Bank” means a banking organization or other financial institution engaged in the business of banking, chartered under federal or any state law, and regulated by any federal or any state banking regulatory authority. “Bank” shall include but not be limited to a commercial bank, savings bank, savings and loan association, and trust company, as well as an affiliate of such a bank.
(3) “Business Finder's Fee Program” means the Program authorized pursuant to this subchapter and designed to incentivize Delaware businesses to encourage their suppliers, customers, and other businesses to relocate to Delaware, resulting in job creation, increased tax revenues, and strengthened supply networks.
(4) “Certified new business firm” means a new business firm that has been certified by the Director pursuant to the provisions of § 2093 of this title.
(5) “Certified sponsor firm” means a sponsor firm that has been approved by the Director pursuant to the provisions of § 2093 of this title.
(6) “Credit” means a reduction of the final balance for tax reported due by a certified sponsor firm or a certified new business firm on a tax or information return pursuant to the Business Finder's Fee Program.
(7) “Director” means the Director of the Division of Small Business.
(8) “Division” means the Division of Small Business within the Department of State.
(9) “Full-time Delaware employee” means any employee of a new business firm whose compensation is based on a work week of at least 35 hours and who spends at least 90 percent of that employee's working hours in the State of Delaware.
(10) “New business certification date” means the date the Division officially certifies the joint application of the sponsor firm and the new business firm.
(11) “New business firm” means a business organization that certifies in a joint application pursuant to § 2093 of this title that it:
a. Is a validly organized and existing corporation, limited liability company, limited partnership, general partnership, limited liability partnership, statutory trust or sole proprietorship;
b. Has been doing business for at least 3 years at the time it applies for the credit;
c. Has a place of business outside of the State of Delaware;
d. Has a current business license issued by an out-of-state agency;
e. Does not have a place of business within the State of Delaware, and has not had a place of business within the State of Delaware for at least 3 years at the time it applies for the credit;
f. Is not a tenant of a sponsor firm, and has not entered into a rental agreement for a commercial rental unit, as defined in § 5141 of Title 25, with a sponsor firm; and
g. Is not an affiliate of a sponsor firm.
(12) “Real estate agency” means a person licensed as a real estate broker or salesperson under Chapter 29 of Title 24 and acting within the course and scope of that license, or a partnership, association or corporation engaged in the business of buying or selling real estate.
(13) “Real estate developer” means a person in the business of:
a. Acquiring land (raw or improved);
b. Improving raw land or building structures (residential or commercial) on land so acquired (or both); and
c. Selling land, where applicable with the structure, to customers.
A person shall be treated as a real estate developer or as a contractor who is not a real estate developer depending, in each case, upon the business in which the person is engaged with respect to a specific parcel of real estate.
(14) “Sponsor firm” means a business organization that certifies in a joint application pursuant to § 2093 of this title that it:
a. Is a validly organized and existing corporation, limited liability company, limited partnership, general partnership, limited liability partnership, statutory trust or sole proprietorship;
b. Has been doing business in Delaware for at least 3 years at the time it applies for the credit;
c. Has a place of business in Delaware, has a current Delaware business license issued by the Delaware Division of Revenue or other Delaware licensing agency;
d. Has not entered into a rental agreement for a commercial rental unit, as defined by § 5141 of Title 25, with the new business firm;
e. Is not a real estate agency, real estate developer, or landlord, as defined by § 5141 of Title 25, for the new business firm, or a bank or other lender who provides financing for the new business firm to establish a Delaware business location; and
f. Is not an affiliate of a new business firm.
