A qualified company must demonstrate qualified expenditures greater than $100,000 during any 12 consecutive month period, and may aggregate expenditures across multiple projects over the course of the year to meet this threshold. 

To be eligible, a qualified company must provide opportunities for Delaware residents to serve as interns, in accordance with rules promulgated by the Division of Small Business. Applicants must submit a Delaware Impact Plan detailing how the qualifying activities will benefit the State of Delaware and its residents.

Applicants apply to the Division of Small Business with an application including budgets, proof of financing, cast lists, location lists, a Delaware Impact Plan, and any other requested information. 

The Division of Small Business provides preliminary approval or denial within 60 days. 

Upon completion of the qualified production, the qualified company submits an application of completion, including the required CPA audit, to receive a final approval and Certificate of Completion (or denial), which must be attached to the Delaware tax return on which the credit is claimed.

Credits may be carried forward for up to 5 years. 

Unused credits may be transferred, sold, or assigned, but only if the transfer is registered and approved in advance by the Division of Small Business, which has 60 days to approve or deny the request. 

Credits granted to a pass-through entity, if not transferred, may be divided among partners, members, shareholders, or owners according to their distributive shares or an alternate agreed-upon method. 

Loan-out companies are subject to a 6.6% Delaware withholding tax on payments for services performed in Delaware; nonresident loan-out employees performing services in Delaware are treated as taxable nonresidents. 

The Division of Small Business must issue preliminary approval or denial within 60 days of application, and a final approval/Certificate of Completion or denial within 60 days of the application of completion. 

By applying for or accepting a transfer of the credit, the applicant/transferee agrees to public disclosure of the credit amount awarded or transferred. 

No applications may be submitted after June 30, 2031, though projects with initial approval prior to that date may still receive final approval, and credits may be claimed/carried forward within the remaining portion of the 5-year term.