AN ACT TO AMEND PART II, TITLE 30, DELAWARE CODE, BY ADDING A NEW CHAPTER 20 GRANTING A CORPORATION INCOME TAX CREDIT TO CERTAIN BUSINESS FIRMS WHICH CONTRIBUTE TO NEIGHBORHOOD ORGANIZATIONS OR WHICH ENGAGE IN ACTIVITIES TENDING TO UPGRADE NEIGHBORHOOD AREAS.
Be it enacted by the General Assembly of the State of Delaware:
Section 1. Part II, Title 30, Delaware Code, is hereby amended by adding a new "Chapter 20" as follows:
CHAPTER 20. NEIGHBORHOOD ASSISTANCE TAX CREDIT
§ 2001. Short title
The provisions of this chapter shall be known and may be cited as the "Neighborhood Assistance Act."
§ 2002. Definitions
(1) "Community services" means any type of counseling and advice, emergency assistance or medical care furnished to individuals or groups in an impoverished area.
(2) "Impoverished area" means any area in Delaware which is certified as such by the State Board of Welfare and approved by the State Tax Board. Such certification shall be made on the basis of Federal census studies and current indices of social and economic conditions.
(3) "Neighborhood organization" means any organization performing community services in an impoverished area and holding a ruling from the Internal Revenue Service of the United States Department of the Treasury that the organization is exempt from income taxation under the provisions of the Internal Revenue Code.
(4) "Neighborhood assistance" means furnishing financial assistance, labor, material, and technical advice to aid in the physical improvement of any part or all of an impoverished area.
(5) "Business firm" means any business entity authorized to do business in the State of Delaware and subject to Delaware Corporation income tax.
(6) "Job training" means any type of instruction to an individual who resides in an impoverished area that enables him to acquire vocational skills so that he can become employable or be able to seek a higher grade of employment.
(7) "Education" means any type of scholastic instruction to an individual who resides in an impoverished area that enables him to meet educational requirements for known job vacancies.
(8) "Crime prevention" means any activity which aids in the reduction of crime in an impoverished area.
§ 2003. Declaration of policy
It is hereby declared to be public policy of the State of Delaware to encourage the investment by business firms in offering neighborhood assistance and providing job training, education, crime prevention, and community services, both directly and by contributions to neighborhood organizations, to benefit individuals living in impoverished areas.
§ 2004. Qualification for tax credit
Any business firm which contributes to a neighborhood organization or which engages in the activities of providing neighborhood assistance, job training or education for individuals not employed by the business firm, community services, or crime prevention in an impoverished area shall receive a tax credit as provided in section 2005 of this chapter if the State Board of Welfare and the State Tax Board annually approve the proposal of such business firm, setting forth the program to be conducted, the impoverished area selected and the estimated amount to be invested in the program. The State Board of Welfare and State Tax Board are hereby authorized to promulgate rules and regulations for the approval or disapproval of such proposals by business firms.
§ 2005. Corporate income tax credit; amount
The State Tax Commissioner shall grant a tax credit against any Delaware corporation income tax due 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 chapter. Such tax credit, however, shall not exceed five per cent of the annual tax paid by the business firm or fifty thousand dollars ($50,000), whichever is less.
§ 2006. Unused tax credit
Any unused tax credit allowed pursuant to section 2005 of this chapter shall be a carry-over to the succeeding taxable years until the full credit has been allowed.
§ 2007. Discretionary tax credit
Notwithstanding any limitations imposed by section 2005 of this chapter, the State Tax Commissioner may grant a tax credit against any corporate income tax due of up to $50,000 of the investment by a business firm in a program approved under this chapter.
Section 2. This Act shall take effect July 1, 1968.
Became a law on July 25, 1968, when the over-ride of the Governor's veto became complete.