Delaware Tax Credits - Application For New Business Facility Credits

Tax Credits - Application For New Business Facility Credits
Application For New Business Facility Tax Credits - Form 402AP 9901
STATE OF DELAWARE
Department of Finance
APPLICATION FOR NEW BUSINESS FACILITY
Division of Revenue
TAX CREDITS
820 N. French Street
P.O. Box 8750
Wilmington Delaware 19899-8750
FORM 402AP 9901

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THIS APPLICATION MUST BE COMPLETED AND FILED WITH THE DIVISION OF REVENUE PRIOR TO CLAIMING ANY
CORPORATE INCOME TAX CREDITS OR REDUCTIONS IN LICENSE TAXES PURSUANT TO CHAPTER 20, TITLE 30, DELAWARE CODE.

PART A -- NAME AND ADDRESS
1.
Federal Employer Identification Number

1 --2. Name of Taxpayer
3. Address
4. Location of qualifying business facility (if different from above).
5. Contact Person

(

PART B -- BUSINESS ACTIVITIES
Check the appropriate qualifying activity(s)
Aviation Maintenance & Repair Services
Computer Software Sales (Wholesale Only)
Consumer Credit Reporting/Collection Services
Data Processing or Data Preparation
Engineering
Manufacturing
Scientific, Agricultural or Industrial Research
Telecommunications
Check the appropriate type of facility
New facility
Replacement facility
Located on a Brownfield (Verification required from DNREC)

)

Telephone Number

Wholesaling
Management & Support Services for Activities listed
Combination of Activities listed
Occupational Licenses -- Targeted Areas Only
Retailing -- Targeted Areas Only
Other ________________ -- Brownfield Areas Only
Other ________________ -- Green Industries Only

Expansion with new employees
Expansion without new employees

PART C -- QUALIFYING FACILITY INFORMATION
1. Enter the date the facility was placed in service.
2. Enter the value (at original cost if owned by the taxpayer, or eight times the annual rent paid less any amounts received as subrentals if leased) of
the real and tangible personal property, except inventory or property held for sale to customers, which constitutes the new business facility or
which is used by the taxpayer in the operation of the business facility. Include in this investment amount all costs expended by the taxpayer for
environmental investigation and remediation if such facility is located on a brownfield.
$
3. If the qualifying facility is leased, provide the name, address and federal employer identification number of the lessor.
F.E.I.N
4. Enter the number of new business facility employees employed by the taxpayer on a regular and full-time basis in the operation of the new,
replaced or expanded facility.
5. If the qualifying facility has been acquired from another, provide the name, address and federal employer identification number of the previous
owner.
F.E.I.N
6. Is the taxpayer or firm related to the individual or firm listed above? [ ] YES

Signature

[ ] NO

Date

If yes, please describe the relationship.

NEW BUSINESS FACILITY TAX CREDITS
FORM 402AP 9901
GENERAL INSTRUCTIONS
Form 402AP is used to apply for the Delaware corporate income tax credit and the Delaware gross receipts tax
reduction which is available to businesses who establish or expand facilities located in Delaware and meet
certain eligibility requirements. Form 402AP must be completed and returned to Delaware Division of
Revenue, 820 North French Street, Wilmington, Delaware 19801 (e-mail at [email protected] The
Division of Revenue will notify the applicant in writing if the application is approved or disapproved. Approval by
the Delaware Division of Revenue must be granted before the corporation can claim the income tax credits or the
gross receipts tax reduction. A separate Form 402AP must be completed for each new or expanded facility.
Effective for all qualified facilities placed in service after June 30, 2011, the general corporate income tax credits are
$500 for each qualified employee and $500 for each $100,000 of qualified investment. If the facility is placed in
service in a targeted area, the corporate income tax credits are increased to $750 for each qualified employee
and $750 for each $100,000 of qualified investment.
Any manufacturer located in Delaware may be entitled to green industries Delaware corporate income tax credits
if the manufacturer reduces the amount of waste released from their manufacturing process by 20% or uses at
least 25% of recycled materials in their manufacturing process. Additional credits are available if the manufacturer
is in the business of the processing and resale of materials removed from the Delaware solid waste stream
or is engaged in the business of the collection of materials for recycling and the distribution of recycled materials.
Effective for all qualified facilities placed in service after June 30, 2011, any taxpayer may be entitled to Delaware
corporate income tax credits of $750 for each qualified employee and $750 for each $100,000 of qualified investment
if the facility is located on a brownfield site. If the brownfield site is located in a targeted area, the corporate
income tax credits are increased to $900 for each qualified employee and $900 for each $100,000 of qualified
investment. A brownfield site is defined as a vacant or unoccupied site that has been environmentally contaminated
by commercial or industrial activity as verified by the Delaware Department of Natural Resources and
Environmental Control.

SPECIFIC LINE INSTRUCTIONS

PART A -- NAME AND ADDRESS
Line 1.
Line 2.
Line 3.
Line 4.
Line 5.

Enter the Federal Employer Identification Number of the facility applying for the New Business Facility
Tax Credit.
Enter the name of the business applying for the New Business Facility Tax Credit.
Enter the address of the facility applying for the New Business Facility Tax Credit.
Enter the location of the facility applying for the New Business Facility Tax Credit.
Enter the name and telephone number of the person submitting this application.

PART B -- BUSINESS ACTIVITIES
Please check the appropriate box or boxes which describe the activities of the facility applying for the New Business
Facility Tax Credit.
PART C -- QUALIFYING FACILITY INFORMATION
Enter the date (MM/DD/YY) the facility applying for the New Business Facility Tax Credit was placed
Line 1.
in service.
Enter the value, at original cost, of the real and tangible property used at the location of the facility
Line 2.
applying for the New Business Facility Tax Credit.
If the facility applying for the New Business Facility Tax Credit is leased, enter the name, address and
Line 3.
Federal Employer Identification number of the lessor.
Enter the number of employees employed at the facility applying for the New Business Facility Tax
Line 4.
Credit.
If the facility applying for the New Business Facility Tax Credit was acquired from another, enter the
Line 5.
name, address and the Federal Employer Identification number of the previous owner.
If the facility applying for the New Business Facility Tax Credit is related to the previous owner, check
Line 6.
the "YES" box and describe the relationship between the two entities. Check "NO" if the entities are
not related.