House Passes Harris Bill to Create Delaware Film Tax Credit

DOVER – In an effort to strengthen Delaware’s economic growth and competitiveness, the House passed legislation Thursday to establish a new tax credit for film projects created within the state.

Sponsored by Rep. Kerri Evelyn Harris, Rep. Mike Smith, and Sen. Elizabeth “Tizzy” Lockman, House Bill 364 would create the Delaware Entertainment Production Tax Credit, which is designed to attract filming, television, esports, and videogame production in the First State. 

“For many years Delaware has relied heavily on a concentrated group of revenue producing industries, particularly financial services and franchise revenue,” said House Majority Leader Kerri Evelyn Harris.

“Those industries remain critically important, but we also have to position Delaware for the next generation of economic growth. Creative industries, digital entertainment, streaming content, esports, and videogame development are all rapidly expanding sectors that other states are aggressively competing to attract.” 

To qualify for the Delaware Entertainment Production Tax Credit, companies would need to demonstrate that they invested more than $100,000 in eligible activities over a 12-month period. Qualified companies could then receive a tax credit equal to 30% of those investments, which could be applied toward certain Delaware state taxes.

Independent verification of spending would also be required, as well as public reporting requirements and interagency oversight.

The bill also prioritizes productions that hire Delaware residents, use Delaware businesses, and make long-term commitments to the state. It includes internship opportunities to help build a workforce pipeline and support Delaware students and young professionals.

“After trailblazing this effort with HB 237 last year, I was proud to work with Rep. Harris on HB 364 to give Delaware a competitive tool to attract the film production industry,” said Rep. Mike Smith.

“This measure is intended to bring new revenue to local businesses and create real jobs for Delaware workers. With most states already offering similar incentives, this bill ensures we stay competitive and strengthens our economy through smart, accountable economic development.”

“Delaware has immense potential to be a hub for prospective filmmakers. We have it all – beaches, farms, cities, and history,” said Senate Majority Whip Elizabeth “Tizzy” Lockman. “That’s why now is the time for Delaware to join the majority of states and incentivize production in our State. This legislation will provide a huge economic boost to our State.”

HB 364 now heads to the Senate for consideration.