HB 170 Summary

• Deletes the former Delaware Investment Tax Credit Program (Subchapter X, Chapter 87A, Title 29) and replaces it with the Angel Investor Job Creation and Innovation Act, a new comprehensive tax credit program for investments in qualified small businesses.

• Establishes a 25% tax credit for qualified investors and qualified funds that invest minimum amounts ($10,000 individually or $30,000 for funds) in certified Delaware small businesses engaged in high-technology, agricultural, manufacturing, environmental, or transportation fields.

• Requires businesses and investors to meet specific certification requirements: businesses must have fewer than 25 employees, be in operation less than 10 years (20 for FDA-regulated medical devices), have no previous private equity investments exceeding $4 million, and employ at least 51% of workforce in Delaware.

• Imposes a 3-year holding period for investments; failure to maintain this period requires repayment of tax credits, with graduated repayment percentages (100%, 66%, 33%) depending on which year the failure occurs.

• Caps annual tax credits at $5,000,000 per calendar year (through 2023), with $250,000 individual and $500,000 per-business limits, and creates an Angel Investor Job Creation and Innovation Act Administration Fund from application fees to cover program administration.