Today at the Central Delaware Chamber of Commerce Legislative Luncheon, Governor Markell gave his final report as Governor to the group. He touted several successes, some of which were rebutted by Senator Bonini such as wage growth after 5 years of decline. The growth percentage looks faster because the income base shrank for 5 years, Bonini said. One success was saving jobs after the merger with a new research tax incentive bill.
The bill passed yesterday. Associate Press Reporter Randal Chase summarized the story this way.
The bill eliminates a $5 million aggregate cap on research and development tax credits and makes the credits refundable. It also restores a never-used new jobs tax credit and expands it to include jobs retained after a corporate restructuring.
Dow and DuPont already have said that the headquarters of stand-alone agricultural and specialty products businesses will be located in Delaware.
The bill is expected to cost taxpayers $3.5 million in fiscal 2018 and $10.6 million in fiscal 2019.
Opponents argue that the measure amounts to corporate welfare on the backs of taxpayers, with little accountability or any guarantee that it will benefit the state.
“We must always seek out ways to foster more innovation and the creation of well-paying jobs for our workforce,” Markell said in a prepared statement. “Passage of this legislation continues the tremendous cooperation that helped convince the leaders of Dow and DuPont to locate new headquarters in Delaware, while it also paves the way for more companies to innovate, increase research and development, and create jobs in our state.”