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HB 364

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO A DELAWARE ENTERTAINMENT PRODUCTION TAX CREDIT.

153rd General Assembly (2025-2026) Introduced by Bill Carson and 17 co-sponsors

HB 364 aims to revise Delaware’s entertainment production tax credit to attract film and media work by adjusting credit details, eligible expenditures, and compliance rules.

Signed by Governor
0
WeVote Research Nonpartisan
Bill Summary · HB 364

Summary: House Bill 364 (Session 153) – Delaware Entertainment Production Tax Credit

Overview

HB 364 proposes amendments to Title 30 of the Delaware Code to modify the Delaware Entertainment Production Tax Credit. Sponsored by a broad group of legislators and introduced on April 9, 2026, the bill seeks to adjust incentives related to film and other entertainment production activities within Delaware.

Purpose and Intent

  • To enhance or revise the state’s tax credit program designed to attract entertainment production to Delaware.
  • Aimed at supporting local economic activity, job creation, and associated spending in the entertainment industry by offering a state-level tax credit to eligible productions.

Key Provisions and Changes (as proposed)

Note: The exact text of amendments is not provided here; the summary below reflects typical areas such bills address. If enacted, HB 364 would likely modify several of the following components:

  • Credit Amount and Structure:
    • Establishes or revises the maximum amount of the Delaware Entertainment Production Tax Credit.
    • Defines the rate of the credit (e.g., a percentage of qualified production expenditures) and any caps per project.
  • Qualifying Expenditures:
    • Specifies types of expenses that qualify (e.g., in-state payroll, production services, equipment, local supplies, post-production activities).
    • May set minimum spend thresholds or caps for non-Delaware residents or out-of-state expenditures.
  • Eligibility Criteria:
    • Defines eligible productions (e.g., feature films, television series, commercials, digital media projects) and may exclude other categories.
    • Requires compliance with state labor, environmental, and incentive program rules.
  • Apportionment and Allocation:
    • Determines how credits are allocated among participating entities (e.g., production company, investors, or lenders) and whether transfers or carry-forwards are allowed.
  • Application and Certification Process:
    • Outlines application deadlines, required documentation, and milestones for approval.
    • Establishes responsibilities of the Delaware Division of Revenue or other state agencies in approving and certifying credits.
  • Cap and Sunset Provisions:
    • Sets an overall cap on credits available per year or per project, and may include sunset provisions or triggers for future renewal.
  • Compliance and Recapture:
    • Details compliance reporting requirements, records retention, and potential recapture or reduction of credits for noncompliance (e.g., failure to meet job creation targets or spend requirements).
  • Administrative and Administrative Burdens:
    • Addresses administrative costs, auditing rights, and enforcement mechanisms.

Who Would be Affected

  • Production Companies and Investors: Potential eligibility for tax credits tied to Delaware-qualified expenditures; impact on planning, budgeting, and financing structures for productions.
  • Delaware-Based Contractors and Talent: Possible increase in in-state employment, services, and spend due to in-state qualifying expenditures.
  • State Revenue and Budget: Changes in anticipated tax credits claimed against state revenue; potential effects on the corporate or personal income tax bases, depending on interaction with other incentives.
  • Regulatory Agencies: Delaware Division of Revenue and possibly the Office of Auditor or related agencies would administer, certify, and monitor credits.
  • Local Economies: Local communities hosting productions could benefit from spending on services, lodging, vendors, and tourism.

Procedural and Timeline Considerations

  • Committee Assignment: As of 2026-04-09, HB 364 was introduced and assigned to the Revenue & Finance Committee in the House.
  • Sponsorship: A broad slate of co-sponsors indicates cross-chamber support and a focus on a statewide economic development strategy through entertainment production incentives.
  • Next Steps: If advanced, the bill would undergo committee hearings, potential amendments, and votes in the House before moving to the Senate for consideration. Passage would typically require approval by both chambers and the governor’s signature. Any sunset or renewal provisions would influence long-term program viability.

Potential Impacts and Considerations

  • Expected aim is to increase Delaware’s competitiveness as a location for film and entertainment production.
  • Balance sought between stimulating economic activity and controlling cost to the state’s budget through credit caps and compliance safeguards.
  • Effectiveness would depend on administration of the program, clarity of eligibility criteria, and robust measurement of economic impact (jobs created, in-state expenditures, and lingering economic benefits).

If you have access to the bill’s text or fiscal note, I can provide a more precise, line-by-line breakdown of the exact provisions, thresholds, and financial implications.

Compiled from official sources — confirm details with the bill’s official record.

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