SENATE BILL NO. 483
AN ACT TO AMEND TITLE 5 RELATING TO THE BANK FRANCHISE TAX.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend §1105, Title 5 of the Delaware Code, by adding to said section new subsections (d), (e) and (f) to read as follows:
"(d) For taxable years beginning after December 31, 1996, and ending before January 1, 2002, there shall be allowed as a credit against the tax imposed under subsection (a) an amount equal to $400 for each new qualified employee in excess of 50 qualified employees above the number of employees employed by the banking organization in full time employment during the base year. For purposes of this subsection, the base year shall be the period after December 31, 1995, and before January 1, 1997.
(e) The following conditions apply in determining the credit under subsection (d) of this section:
(1) No credit may be claimed until the taxpayer has made new investments of at least $15,000 per qualified employee in excess of the number of employees employed by the banking organization in full time employment during the base year. New investment,' for purposes of this subsection, shall include only the cost of land and improvements to land, machinery, and equipment; provided that such new investment is placed in service within this State after December 1996 and was not used by any person at any time within the one year period ending on the date the taxpayer placed such property in service in the conduct of the business of a banking organization. For purposes of this subsection, if the new investment is leased or subleased by the taxpayer, the amount of new investment shall be deemed to be eight time the net annual rent paid or incurred by the taxpayer for such investment. The net annual rent shall be the gross rent paid or incurred by the taxpayer during the taxable year, lehs any gross rental income received by the taxpayer from sublessees of an portion of such facility during such taxable year: and
(2) In determining the number of qualified employees, there shall be considered only employees:
i. Who are employed within this State on a regular and full time basis. 'Full time employment' shall have the meaning ascribed to that term in §2010(14) of title 30;
ii. For whom the banking organization or trust company provides health care benefits as defined in §2010(15) of title 301 and
iii. Who have been employed in this State by the taxpayer for a continuous period of at least six months, verifiable by documentary evidence, and who were not employed at the same facility in substantially the same capacity by a different employer during all or a part of the base year.
(f) (1) The amount of credit allowable or carried forward under subsections (b),(c),(d), and (e) of this section shall together not exceed 50% of the amount of tax imposed upon the taxpayer by subsection (a) for such taxable year.
(2) The amount of credit determined under subsection (d) of this section -for any taxable year that is not allowable for such taxable year solely as a result of the limitation contained in paragraph (1) of this subsection shall be a credit carryover to each of the succeeding nine years in the manner described in §2011(f) of title 30.
Section 2. Amend §I 105(0, Title 5 of the Delaware Code, by striking the period "." at the end of the said subsection and substituting in lieu thereof the following: "; 1.7% of the amount of taxable income for years beginning after December 31. 1996, in excess of $650,000,000."
Section 3. If any provision of this Act or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the Act which can be given effect without the invalid provision or application, and to that end the provisions of this Act are declared severable.
Section 4. Section I of this Act shall be effective for tax years beginning after December 31, 1996 and ending before January I, 2002. Section 2 of this Act shall be effective for tax years beginning after December 31, 1996.
Approved July 11, 1996