# Delaware Film Tax Credit

Source: https://storiara.com/incentives/us/delaware
Last updated: 2026-09-14
Author: Charles Hirschhorn, Storiara

> Delaware created its first production incentive with House Bill 364, effective July 1, 2026. Qualified companies earn a 30% transferable, nonrefundable credit on Delaware expenditures once they spend more than $100,000 in any 12 consecutive months. Awards are capped at $10 million per fiscal year, applications close June 30, 2031, and the Division of Small Business administers the program.

## A program that started this summer

Until July 1, 2026, Delaware had no production incentive. House Bill 364 (as amended by House Amendment 2) added chapter 20F to Title 30 of the Delaware Code, and the Division of Small Business now runs it. The Division's page says full requirements "will be updated and made available soon," and the law gives it until January 1, 2027 to set procedures for audits and credit transfers. So the statute is settled, but forms and regulations are still arriving. Email the contact on the Division's film page before you lock a budget.

## How the credit works

A qualified company, meaning one incorporated in or registered to do business in Delaware and primarily engaged in qualified activities, earns 30% of qualified expenditures. Qualified activities cover features, series, pilots, commercials, webisodes, music videos, award and game shows, esports events, and video games made for multi-market distribution. Political ads, industrials, infomercials, and live sports (other than esports) are out.

The credit is a [transferable tax credit](https://storiara.com/glossary/transferable-tax-credit) against Delaware personal or corporate income tax, insurance premium tax, or bank franchise tax. It isn't refundable. Unused credit carries forward up to five years, and any sale needs the Division's advance approval.

Total aggregate payroll counts as [qualified spend](https://storiara.com/glossary/qualified-spend), so resident and nonresident wages are both in. Payments to [loan-out companies](https://storiara.com/glossary/loan-out-company) carry 6.6% Delaware withholding, and the audit has to confirm it was remitted.

## Worked example: $1,000,000 in Wilmington

| Line | Amount |
|---|---|
| Total budget | $1,000,000 |
| Less: story rights | ($45,000) |
| Less: marketing and festival costs | ($20,000) |
| Less: post and VFX done in Philadelphia | ($60,000) |
| Less: flights and insurance bought outside Delaware | ($25,000) |
| Qualified Delaware expenditures | $850,000 |
| Credit at 30% | $255,000 |

Airfare counts only through a Delaware travel agency, and insurance and bonding only through a Delaware insurance agency, so booking those locally adds $7,500 of credit here. Legal and accounting fees directly tied to the production do count.

## A $5,000,000 show against a $10,000,000 pool

$4,300,000 of qualified spend earns $1,290,000, which is 12.9% of the state's $10,000,000 fiscal-year limit. There's no per-project cap in the statute, but a handful of mid-size shows could use the whole year's allocation, and the state is required to prioritize applicants that hire Delaware residents, use Delaware vendors and facilities, bring repeat or multiple projects, or plan a permanent presence.

## Applying under the new law

1. Register the company in Delaware.
2. Apply to the Division of Small Business with budgets, proof of financing, a cast list, a location list, and a Delaware Impact Plan describing how the work benefits the state and its residents.
3. The Division gives preliminary approval or denial within 60 days, and may consult the Motion Picture and Television Development Commission.
4. Offer internships to Delaware residents under the Division's rules; it's a condition of the credit.
5. After completion, pay for a full audit by an independent CPA and submit it with the application of completion. The Division decides or requests more information within 60 days.
6. Attach the Certificate of Completion to the Delaware return where the credit is claimed.

## Fine print in chapter 20F

The audit is at your cost, though the law lets the Division create lighter procedures for small businesses where a full audit would be too expensive. Credit amounts are public: applying means agreeing to disclosure of what you're awarded or buy. No applications are accepted after June 30, 2031, although projects with initial approval before then can still get final approval. A company in default on Delaware taxes or state loans doesn't qualify.

## Nearby options

[Maryland](https://storiara.com/incentives/us/maryland), [Pennsylvania](https://storiara.com/incentives/us/pennsylvania), and [New Jersey](https://storiara.com/incentives/us/new-jersey) surround Delaware and each run a program worth pricing. [Washington, DC](https://storiara.com/incentives/us/district-of-columbia) pays a rebate of up to 35% on some spend with a $250,000 minimum, and [Connecticut](https://storiara.com/incentives/us/connecticut) pays 30% only once in-state spend passes $1,000,000. Delaware's full 30% applies from the first dollar once you clear $100,000, which suits small shoots. Compare them in the [incentive calculator](https://storiara.com/tools/incentive-calculator), read [how film tax credits work](https://storiara.com/blog/how-film-tax-credits-work), and see every program on the [incentives hub](https://storiara.com/incentives).

## Frequently asked questions

### Does Delaware have a film tax credit?

Yes, as of July 1, 2026. House Bill 364, as amended by House Amendment 2, created a 30% Delaware Entertainment Production Tax Credit for film, TV, commercials, music videos, video games, and esports.

### What is the minimum spend for Delaware's film tax credit?

Qualified expenditures must be greater than $100,000 during any 12 consecutive months. A company can add up spending across several projects to reach it.

### Can Delaware film tax credits be sold?

Yes. Unused credits can be transferred, sold, or assigned if the Division of Small Business approves the transfer in advance. The Division has 60 days to approve or deny. Credits aren't refundable but carry forward five years.

### How much money is in Delaware's film incentive?

Credit awards can't exceed $10 million in any fiscal year. The Secretary of State decides how to administer that limit, such as pro rata or first come, first served.

## Sources

- [Delaware General Assembly: House Bill 364 as amended by House Amendment 2 (engrossment)](https://legis.delaware.gov/json/BillDetail/GenerateHtmlDocumentEngrossment?engrossmentId=37894&docTypeId=6)
- [Delaware Division of Small Business: Delaware Film Tax Credit](https://business.delaware.gov/film/)