Bill > HB364

This bill establishes the Delaware Entertainment Production Tax Credit program to encourage investment in Delaware's film, television, esports, and videogame industries by offering a tax credit of 30% on qualified expenditures for eligible companies. A "qualified company" is defined as one primarily engaged in these industries, incorporated or registered in Delaware, and not in default on state taxes or loans, while "qualified activities" encompass the creation of various media projects and digital interactive entertainment intended for broad distribution, excluding certain content like political ads or obscene material. To qualify, companies must demonstrate over $500,000 in "qualified expenditures," which are direct preproduction, production, and postproduction costs incurred within Delaware for these activities, including payroll, services, and equipment rentals, but excluding work done outside the state or for marketing. The program is administered by the Division of Small Business, which will review applications, require an independent audit of expenditures, and issue a Certificate of Completion for approved projects. Eligible tax credits can be transferred, sold, or assigned to other taxpayers and can be carried forward for up to five years if not fully used in the initial tax year, with a cap of $10 million in credit awards per fiscal year, and the program is set to sunset on June 30, 2031, though projects approved before then can still receive final approval and claim credits.