Legislators in Delaware have put forward a bill that would create “Innovative Business Finder’s Fee (BFF)” tax credits. Supporters of the bill say that the BFF tax credits could turn hundreds of Delware businesses into a sales team for the state.
According to the bill, the BFF credits would offer existing Delaware businesses incentives for any new jobs that they bring to the state. The bill is being sponsored by Representative Brad Bennett and Senator Nancy Cook and the Co-Chairs of the Small Business Caucus Representatives Bryon Short and Danny Short. Bennett, Short and Short all own small businesses.
“If a Delaware business is able to convince their suppliers, their customers, or their business partners to locate in Delaware – that’s something we should reward. This incentive could get more people to work to get more people working. It makes financial sense for our budget, economic sense for our families and common sense for our future,” said Governor Markell of the bill.
The BFF credits would allow a company that recruits a new employer to the state and the company that was recruited to share a tax credit of $1,000 for each employee their effort brings to Delaware. The credits will last for three years, and will increase if the number of jobs also increases. The Delaware Economic Development Office is responsible for tracking businesses recruited.
In order to qualify for the credits businesses would have to create just 3 new jobs. There are some checks on who qualifies though, the credits would not apply to some businesses like commercial landlords who’s sole job is recruiting new clients to the state.