This Act establishes an Early Childhood Education Endowment. For the fiscal year ending June 30, 2026, the State Treasurer is directed to transfer 1% of the annual revenue from the Corporate Franchise Tax to initially fund the Endowment. The Endowment is invested by the State Treasurer under a fiduciary standard. Programmatic administration and disbursement of released funds is the responsibility of the Department of Education in consultation with the IRMC to oversee the operation, expansion, and disbursements of the Endowment. Annual draw rates are capped at the prior fiscal year's net investment return on endowment assets and may not exceed 7.5% of total endowment balances in any year. The State Treasurer sets the draw rate after reviewing investment performance, endowment growth projections, and long-term sustainability. The State Treasurer may commingle endowment assets with other State Treasurer-managed investment portfolios for efficiency, provided that the endowment's proportionate share of income and gains is separately accounted for. "Expansion costs" include expenses to increase early child care and education program provider payment rates, increase equitable access and affordability of high quality early childhood education, extend the hours of operation covered, or to sustain such services. "Programmatic costs" include costs for parent and early child care and education enrollment campaigns, local governance partners, needs assessment technical assistance, facilities program technical assistance, and workforce recruitment and scholarships for educators. Not later than June 30 of each year, the State Treasurer must submit to the IRMC and the General Assembly an annual endowment report including: (1) total endowment market value; (2) net investment return for the prior fiscal year; (3) the draw rate authorized for the current fiscal year and the basis for that determination, including a 10-year sustainability projection; (4) total funds released to DOE and the purposes for which such funds were expended; and (5) any recommended adjustments to the draw rate for the ensuing fiscal year. Not later than January 1, 2033, and every 5 years thereafter, the Secretary of DOE must prepare an impact analysis concerning the operations of the Early Childhood Education Endowment and the effect that the expenditure of funds from the endowment has had on the availability, affordability, and quality of early child care in the State.
This Act creates a film production tax credit. It requires companies to obtain, at their own expense, an independent audit certifying eligible expenditures. The audit must be submitted to the Division of Small Business for approval and allocation of credits. The credit is nonrefundable, transferable, and may be carried forward for up to 5 years. The credit may be applied against personal income tax, corporate income tax, bank franchise tax, and insurance premiums tax. All credit transfers must be approved by the Division of Small Business. This Act further authorizes necessary data sharing among agencies. Applicants and transferees consent to disclosure of credit amounts by virtue of applying or receiving a transfer. This Act also grants regulatory authority to the Division of Small Business and the Secretary of State to administer the annual credit cap; prioritize and manage awards; and issue reports relating to awards and utilization with input from relevant state agencies. The Division of Small Business may create alternative audit procedures for small businesses where a full audit would be prohibitively expensive. This Act sunsets on June 30, 2031, and no applications may be submitted after that date.
The purpose of this bill is to incentivize the construction and operation of a limited number of high-efficiency Combined-Cycle Gas Turbine (CCGT) electrical generation facilities, with an output of between 100 MW and 500 MW, by creating an Electricity Production Tax Credit (EPTC) and bonus credits. These credits would offset state corporate tax liability while facilitating the increased availability of clean, cost-effective, high-efficiency, and energy production. CCGT power plants are proven technology that can provide significant dispatchable power production to meet Delaware’s growing need for dependable energy, while promoting grid stability that will enable the integration of renewable energy generation. Having the CCGT facilities built within Delaware will improve the energy security of our citizens while reducing power transmission charges and energy loss. The value of the Electricity Production Tax Credit (EPTC) can be increased via bonus credits if the CCGT power-generating facility is built on a brownfield or the current or former site of a power plant. Additional bonus credits can be earned if the plant’s operation exceeds certain high-efficiency thresholds and if it incorporates carbon-capture technology into the design. The value of the credits realized by the facility operator would result from the quantity of electricity delivered. Most CCGT plants operate at a capacity factor of 50% to 85%. A 500 MW power plant, operating within these margins, would be expected to produce somewhere between 2.2 million and 3.7 million MWh per year. At a maximum annual 65% production capacity, a 500 MW plant could serve the needs of approximately 210,000 homes. The total value of the credits for each eligible facility receiving the tax credits established under this bill is limited to $15 million annually. The number of facilities eligible for the tax credits established under this bill will be no more than three statewide.
