DuPont Tax incentives passed

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.”

5 thoughts on “DuPont Tax incentives passed”

  1. I guess corporate welfare can sometimes be beneficial to other than the company receiving the welfare, but how has that worked out for Delaware lately?

    I’m sure that everyone has noticed that the consumer is starting to demand labels for food that contains GMO’s , and it seems that all the major food companies will be labeling their products within the next few years.

    Given the choice in a free market situation, the trend is that consumers will choose products that don’t contain the GMO’s.

    I don’t see this DuPont- Dow Chemical venture being successful in the US without serious government protection and intervention…..there is always China I guess, and I think that may be their main target.

    As an afterthought I have suspicions that they may also be looking to genetically modify the most lucrative and up and coming cash crop….marijuana.

  2. Given the choice in a free market situation, the trend is that consumers will choose products that don’t contain the GMO’s.

    I can understand wanting natural, free-range chicken. But worrying about genetically-altered corn? That’s like thinking “heirloom” tomatoes are “safer” than hybrids. The heirloom may indeed taste better- assuming they don’t get blighted. But they’re not any safer than hybrid or GM.

  3. Yeah, who knows, but there is definitely a growing sentiment against products that have been genetically altered in such a way, and businesses have to take that into account, because ultimately it’s the consumer that dictates the outcome (in a free market).

    The way I see it is the way that I look at some other technologies that human science doesn’t fully understand yet, but attempts to utilize regardless…..It’s akin to giving a monkey a shot gun and putting him on a motorcycle. He probably can manage it just enough to get him and anyone around him in trouble.

  4. At the elemental level, isn’t modified corn the same? Does introducing desired genetic characteristics turn potassium into polonium?

    It’s funny how “progressives” fear progress. Meanwhile, starving masses in the third world have more food to eat.

  5. “It’s funny how “progressives” fear progress.”

    The GM food thing, like water fluoridation and other fears that “they” are tampering with our precious bodily fluids, doesn’t break down neatly into a left/right divide. It draws paranoids from both sides.

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