CHAPTER 492

FORMERLY SENATE BILL

NO. 577 AS AMENDED BY

HOUSE AMENDMENT NO. 1

AN ACT TO AMEND CHAPTER 20, TITLE 30, DELAWARE CODE, RELATING TO THE NEIGHBORHOOD ASSISTANCE ACT.

Be it enacted by the General Assembly of the State of Delaware:

Section I. Amend Chapter 20, Title 30, Delaware Code, by striking the title "Neighborhood Assistance Tax Credit" and substituting in lieu thereof the title "Neighborhood Assistance Tax Deduction".

Section 2. Amend Section 2004, Title 30, Delaware Code, by striking the word "credit" wherever it appears therein and substituting in lieu thereof the word "deduction".

Section 3. Amend Section 2005, Title 30, Delaware Code, by striking said section in its entirety and substituting in lieu thereof a new section to read as follows:

§ 2005. Corporate income tax deduction; amount

For purpose of computing taxable income under Chapter 19, Title 30, Delaware Code, relating to the corporation income tax, the Secretary of Finance shall allow a deduction equal to the amount invested by a business firm in a program, the proposal for which was approved under the provisions of Section 2004 of this Title. Such tax deduction, however, shall not exceed five percent (5%) of the annual tax paid by the business as computed without such deduction, or $50,000, whichever is less.

Section 4. Amend Section 2006 of Title 30, Delaware Code, by striking said section in its entirety and substituting in lieu thereof a new Section 2006 to read as follows:

§ 2006. Unused tax deduction

(a) Any business firm making contributions, after July 1, 1972, in amounts in excess of the maximum allowable deduction permitted under Section 2005, shall be permitted to carry forward the excess contribution as a deduction in any of the next five years subsequent to the date of the initial grant, subject to the limitation imposed by subsection (b).

(b) Excess contributions are those contributions that are not deductible in the year of the grant because of the limitation imposed by Section 2005. The excess contributions carried over from prior years shall be allowable only after contributions for the current year have been deducted and in no event, shall the total deductions under the chapter, for any one year, exceed the limitation imposed by Section 2005.

Section 5. Amend Section 2007 of Title 30, Delaware Code, by striking said Section 2007 in its entirety.

Section 6. This Act shall become effective July 1, 1972.

Approved July 5, 1972.