(a) Subject to the limitations contained in § 2084 of this title and to such return requirements as may be imposed by the Delaware Bank Commissioner, Delaware Insurance Commissioner, or the Secretary, qualified employers shall be eligible during their first certified year and for the 10 taxable years thereafter, and qualified retained employers shall be eligible during their first certified year and for the 9 taxable years thereafter, for credits against the taxes and/or fees imposed by the following statutory provisions:
(1) Chapter 11 of Title 5;
(2) Sections 702 and 703 of Title 18;
(3) Chapter 19 of this title;
(4) Chapter 11 of this title.
The amount of credit shall be determined under subsections (b) through (e) of this section.
(b)Credits based on minimum additional employment in eligible jobs. —(1) Subject to the limitations herein and in § 2084 of this title, in the case of a qualified employer which on December 31 of a certified year has no fewer than 50 qualified employees in excess of the number of its qualified employees on December 31 of its base year, the credit granted under subsection (a) of this section shall be that product determined by multiplying:
a. X, where “X” equals the total of its qualified withholding payments on the compensation of its qualified employees hired and employed after the base year in new eligible jobs, by
b. The credit percentage, which shall consist of the sum of the following:
1. 25%, plus
2. 0.075% for each qualified employee (in excess of 50 more than the number of qualified employees employed during its base year) hired and employed in new eligible jobs.
(2) In no case shall the total credit available under this subsection exceed 40% times X.
(3) In no case shall qualified employees counted for purposes of claiming New Economy Jobs Program credits under this subsection be included in the calculation of employment under subsection (c) or (d) of this section.
(4) If, on December 31 of a qualified employer’s first certified year, the qualified employer does not meet the requirements of paragraph (b)(1) of this section but the number of qualified employees in excess of the number of qualified employees on December 31 of its base year is at least 50 multiplied by a fraction, the numerator of which is the number of months during which the qualified employer has employed qualified employees in new eligible jobs, and the denominator of which is 12, a qualified employer is eligible for the minimum credit percentage of 25 percent of qualified withholding payments on the compensation of the additional qualified employees and for the additional credits as determined in subsection (e) of this section.
(5) In the eleventh certified year, the calculated credit is multiplied by 1 minus the fraction computed pursuant to paragraph (b)(4) of this section.
(6) If, on December 31 of any 2 consecutive certified years after the first certified year, the qualified employer does not employ at least 50 qualified employees in excess of the number of its qualified employees on December 31 of its base year, the qualified employer is disqualified and shall not be permitted to claim any further credit based upon the original application.
a. A disqualification under this provision may be reversed by the Secretary, in the Secretary’s discretion, after receipt of a taxpayer’s written request and statement of reasonable cause, if the Secretary has determined the disqualification is the result of extraordinary circumstances.
b. A disqualification under this provision will not preclude the formerly qualified employer from submitting a new application to the Secretary pursuant to § 2082 of this title, provided that such subsequent application shall require the establishment of a new base year.
(c)Credits based on minimum additional employment in vital jobs. —(1) Subject to the limitations herein and in § 2084 of this title, in the case of a qualified employer which: (ii)
a. Employs on December 31 of a certified year no fewer than 200 vital employees in excess of the number of its vital employees on December 31 of its base year; and
b. Provides an average compensation to such vital employees of at least $70,000, the credit granted under subsection (a) of this section shall be that product determined by multiplying:
1. X, where “X” equals the total of its qualified withholding payments on the compensation of its vital employees hired and employed after the base year in new vital jobs, by
2. The credit percentage, which shall consist of the sum of the following:
A. 25%, plus
B. 0.05% for each vital employee (in excess of 200 more than the number of vital employees employed during its base year) hired and employed in new vital jobs.
(2) In no case shall the total credit available under this subsection exceed 40% times X.
(3) In no case shall vital employees counted for purposes of claiming New Economy Jobs Program credits under this subsection be included in the calculation of employment under subsection (b) or (d) of this section.
(4) If, on December 31 of a qualified employer’s first certified year, the employer does not meet the requirements of paragraph (c)(1) of this section but the number of vital employees in excess of the number of vital employees on December 31 of its base year is at least 200 multiplied by a fraction, the numerator of which is the number of months during which the qualified employer has employed vital employees in new vital jobs, and the denominator of which is 12, a qualified employer is eligible for the minimum credit percentage of 25 percent of qualified withholding payments on the compensation of the additional vital employees and for the additional credits as determined in subsection (e) of this section.
(5) In the eleventh certified year, the calculated credit is multiplied by 1 minus the fraction computed pursuant to paragraph (c)(4) of this section.
(6) If, on December 31 of any 2 consecutive certified years after the first certified year, the qualified employer does not employ at least 200 vital employees in excess of the number of its vital employees on December 31 of its base year, the qualified employer is disqualified and shall not be permitted to claim any further credit based upon the original application.
a. A disqualification under this provision may be reversed by the Secretary, in the Secretary’s discretion, after receipt of a taxpayer’s written request and statement of reasonable cause, if the Secretary has determined the disqualification is the result of extraordinary circumstances.
b. A disqualification under this provision will not preclude the formerly qualified employer from submitting a new application to the Secretary pursuant to § 2082 of this title, provided that such subsequent application shall require the establishment of a new base year.
(d)Credits based on minimum employment in retained eligible jobs. —
(1) Subject to the limitations herein and in § 2084 of this title, in the case of a qualified retained employer which:
a. Maintains in a certified year no fewer than 200 retained eligible jobs; and
b. Provides an average annual compensation of at least $70,000 to the retained employees in such retained eligible jobs, the credit granted under subsection (a) of this section shall be the product determined by multiplying:
1. X, where “X” equals the total of its qualified withholding payments on the compensation of its retained employees employed in retained eligible jobs, by
2. The credit percentage, which shall consist of the sum of the following:
A. 25%, plus
B. 0.05% for each retained employee in excess of 200 retained employees employed in retained eligible jobs.
(2) In no case shall the total credit available under this subsection exceed 40% times X.
(3) In no case shall retained employees counted for purposes of claiming New Economy Jobs Program credits under this subsection be included in the calculation of employment under subsection (b) or (c) of this section.
(e)Additional credit based on geographic employment. —
In addition to the credits determined on the qualified withholding payments for qualified employees, vital employees or retained employees identified under subsections (b) through (d) of this section, a qualified employer or qualified retained employer may claim additional credits determined by:
(1) Multiplying Y-1 times 10%, where “Y-1” equals the total of the qualified withholding payments on the compensation of such qualified employees, vital employees or retained employees identified to be employed in new eligible jobs, vital jobs or retained eligible jobs in an incorporated municipality or a targeted growth area,
(2) Multiplying Y-2 times 5%, where “Y-2” equals the total of the qualified withholding payments on the compensation of such qualified employees, vital employees or retained employees identified to be employed in new eligible jobs, vital jobs or retained eligible jobs in a reclaimed Brownfield in which the qualified employer is the first tenant, and
(3) Multiplying Y-3 times 10%, where “Y3” equals the total of the qualified withholding payments on the compensation of such qualified employees, vital employees or retained employees identified to be employed in new eligible jobs, vital jobs or retained eligible jobs in a targeted growth county.