New Angel Investor Tax Credits Application Open For Delaware Businesses

The state of Delaware has made strides to keep its business friendly reputation in the country. Recently, House Bill 170 also known as the Angel Investor Job Creation and Innovation Act has opened its application for Delaware based small businesses and investors.


“We should do everything we can to support Delaware’s innovators and entrepreneurs who are leading Delaware’s new economy. This legislation would encourage investments in innovative, Delaware-based small  businesses and connect our most talented entrepreneurs with the resources they need to be successful.” – Governor John Carney


As stated by the Delaware Government, the Angel Investor Job Creation and Innovation Act would establish a refundable tax credit for qualified investors for Delaware based small businesses. The goal of this tax credit is to spur job creation and innovation within the state. While Wilmington is currently home to 131 businesses, this tax credit is expected to help strengthen economic development opportunities.


Think you may be eligible or are interested in starting a business? This is what you need to be eligible:


Eligible Businesses:

  • Fewer than 25 employees
  • Been around for no more than 10 years (unless working on FDA approval, then it is up to 20 years)
  • High technology businesses
  • Business  is headquartered in Delaware
  • 51% of the business’ employees are paid in Delaware


Other Businesses Requirements:

  • Uses proprietary software to add value to a product or service
  • Research or develop a product or process
  • Will not issue securities on the public exchange or host a liquidation event 180 days after a qualified investment
  • Eligible invested funds must be used for qualified investments, i.e. buying or renting a building in Delaware, copyrights, and payroll for work in Delaware.


Qualified Investors:

  • Funding is capped at 5 million annually.
  • The Cumulative Tax Credit Limit is $125,000 individually, $250,000 for couples filing together.
  • No more than $500,000 in credits may be awarded in total throughout all three years.


This program will retire in 2021. Investors must invest for three calendar years. Failure to do so will result in the credit being revoked and the credit must be paid back in full. If business fails to maintain employment requirements for 3 years, credit is revoked and must be repaid according to a repayment schedule.  Interested in all of the tax credits Delaware has to offer? Find out more about each of the 10 tax credit opportunities along with grants and different incentive programs on business.delaware.org/incentives.

Latest News

Wilmington Sees Significant Decrease In Crime

January 18, 2019
“Our state can’t be successful if the City of Wilmington is not successful.”   Governor John Carney frequently reminds others how vital Wilmington’s success is to the entirety of the state. So what would make Wilmington successful? For WLA members, it is the focus on Economic Development, Education, Leadership, and Livability. While we often share...

It Takes One Year To Change- YearUp Wilmington’s Success

January 15, 2019
125. That is the number of students enrolled at YearUp Wilmington currently, which is hosted by WLA member, Wilmington University. Providing year-long programs focusing on IT and business, Year Up changes the lives of students through six months of courses and an additional six months of a paid internship.   YearUp The program is free...

WLA Members Come Together To Support IT Works Fall Semester Graduates

January 04, 2019
When you first walk into WLA Member Christiana Care‘s Wilmington location, you don’t expect balloons and lines of people waiting to watch their kids graduate. On the morning of Thursday, December 20th however that’s exactly what happened, as the hospital hosted TechImpact’s ITWorks Wilmington graduation ceremony.   ITWorks: An Overview This workforce development initiative is a...