DOVER, Del. (AP) — House lawmakers have approved proposed changes to Delaware’s corporate income tax system to eliminate disincentives for multi-istate firms to hire workers and invest in property in the state.
The legislation, supported by Gov. Jack Markell, was approved last week on a 36-to-2 vote and sent to the Senate.
The bill revises a formula that equally factors the Delaware-based percentages of a company’s total payroll, property and sales in calculating the state income tax due.
It gradually reduces the weight given the property and payroll factors until, by 2020, a company’s Delawarecorporate income tax would be based solely on Delaware’s proportion of total sales.
If the bill becomes law, the state would lose an estimated $8.2 million in fiscal 2017, $17.6 million the following year, and $22.9 million in fiscal 201
