DOVER, Del. (AP) - Gov. Jack Markell has signed legislation revising Delaware's corporate income tax system to eliminate disincentives for multistate firms to hire workers and invest in property in the state.
The bill signed Wednesday revises how the state apportions income tax, using a formula that is based on a company's payroll, property holdings and sales in Delaware.
The new law reduces the weight given the property and payroll factors until, by 2020, a company's Delaware corporate income tax would be based solely on Delaware's proportion of total sales. Officials say that means companies won't be penalized for adding workers and property in Delaware.
The change follows similar moves by other states.
Officials estimate the change will cost the state more than $48 million over the next three fiscal years.
