Delaware

Bill to create film tax credit clears Delaware House committee

Published

1 month ago

May 7, 2026

Bill to create film tax credit clears Delaware House committee

A Delaware bill creating a film production tax credit cleared its first hurdle May 6, advancing out of the House Revenue & Finance Committee.

Several states offer film and television production tax credits and other incentives to lure projects, often to boost jobs, tourism and visibility.

Delaware does not – at least for now.

The proposal mirrors a recommendation in Delaware’s 5% operational spending growth and accompanying revenue plan, released alongside Gov. Matt Meyer’s proposed fiscal year 2027 budget, and would put the state in line with most of the country.

What does the bill do?

Backed by House Majority Leader Kerri Evelyn Harris, this House bill would create a new film production tax credit for the First State.

Delaware remains one of a few states that does not already have a film tax credit or a similar incentive in place, according to the Dover Democrat.

This means that spending in these sectors – from hotel stays to equipment rentals – is going to other states.

And while other revenue streams have served and continue to serve Delaware well, Harris said, it is also crucial to ensure the state is positioned “for the next generation of economic growth.”

The bill would offer eligible productions – including films, TV shows and video games — a nonrefundable tax credit equal to 30% of qualified expenses, usable against personal income and corporate taxes.

To qualify, companies must show their activities resulted in expenditures more than $500,000 during any consecutive 12-month period. They must also present opportunities to Delawareans to come onboard projects as interns.

Companies must also obtain “an independent audit” out of their own pockets, authenticating eligible expenses. These expenses can include any cost tied back to production, pre-production or post-production that took place within state lines.

These credits would also be transferrable – so long as they are approved by the state Division of Small Business – and can be extended for upwards of five years.

This bill mirrors a similar proposal included in a presented 5% operational spending growth and adjoining revenue plan.

The plan set aside up to $10 million in new revenue for a film tax credit to spur Delaware’s creative economy, though the actual cost would depend on how many productions apply.

Should this bill become law, the state will have a similar cap at $10 million every year, according to Harris.

This isn’t the first time lawmakers have seen this legislation.

In the hours before last year’s session ended, state Rep. Michael Smith backed a bill that would also establish a film tax credit for Delaware.

Also known as the Delaware Entertainment Job Act, the bill would have also established a 30%, “transferable tax credit for an investment in the state” for qualified productions.

Like its legislative relative, the bill would have required productions to bring First State residents as interns to qualify for this credit, as well as produce an audit of expenditures once production has wrapped.

Doing this, the bill argued, would spur job creation, artistic ventures and investment in the media industry.

The bill was also assigned to the House Revenue & Finance Committee, but did not advance. Smith signed on as a co-prime sponsor of this latest bill, according to Harris.

Former Rep. Valerie Longhurst introduced a near-verbatim measure to Smith’s bill back in 2022, but it did not make it all the way through the House.

What do lawmakers, Delawareans think?

For the most part, committee members were receptive to the bill.

Rep. Kendra Johnson was enthusiastic about the bill, asking to come on board as a co-signer of the bill.

She pointed to the HBO crime drama series “Task,” whose entire second season is scheduled to be filmed entirely in southeastern Pennsylvania, starting July 6.

Delaware’s neighbor state was reportedly investing $49.8 million into the project – the largest tax credit bestowed by the state to a single production, as reported by WHYY last year.

The projection is also set to create 3,700 jobs and infuse $194.1 million back into its economy.

Pennsylvania’s current tax credit program offers a 25% to 30% credit to productions that spend no lesser than 60% of their total funds within state lines.

“Imagine the economic growth that is happening there, that could be happening here,” Johnson told the panel.

Others have thrown their support behind bringing a film tax credit to Delaware.

Meyer is one such advocate. He mentioned during his State of the State address that Delaware not offering film tax credits made no sense, considering the latest Superman movie is “literally set” in the First State.

“They should be shooting here,” he said. “We’re just going to let so many other neighboring states soak up all of that Hollywood money?”

Other groups, including the Delaware Arts Alliance and the Delaware Hotel & Lodging Association, have also thrown their support behind the bill, Harris said.

What happens now?

The bill will continue to move through the House.

If signed into law, it would take effect starting July 1, the first day of the new fiscal year.

But lawmakers will need to move quickly – they only have until June 30 to have it passed in both chambers. Otherwise, they’ll need to start all over again come next session.

Olivia Montes covers state government and community impact for Delaware Online/The News Journal. If you have a tip or a story idea, reach out to her at omontes@delawareonline.com.

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Delaware

Two people shot inside Delaware hospital

Published

4 hours ago

June 16, 2026

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Two people shot inside Delaware hospital

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Delaware home heavily damaged after early morning fire

Published

14 hours ago

June 16, 2026

Press Room

Delaware home heavily damaged after early morning fire

A fire heavily damaged a home in Newark, Delaware, early Tuesday morning.

SkyForce 10 was over the scene of the Harmony Woods development on June 16, where a home along Minor Court was significantly damaged following a fire.

NBC10

The fire started around 3:30 a.m. and was brought under control about an hour later, according to officials.

At this time, it is unclear whether anyone was hurt. NBC10 is working to learn more about possible injuries and the circumstances surrounding the fire.

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Delaware

Utility costs are ‘crushing’ in Delaware. What leaders are doing about it

Published

1 day ago

June 15, 2026

Press Room

Utility costs are ‘crushing’ in Delaware. What leaders are doing about it

Between energy costs spiking last year and higher Delmarva Power electricity rates kicking off earlier this month, utility affordability remains top of mind for consumers and lawmakers.

In a press conference June 15, Gov. Matt Meyer called on the Public Service Commission to “freeze rates immediately” ahead of an interim hike set for July, as well as implement penalties for delayed action on solar power. The Democrat also announced he will join a petition to stop the “gouging” on ratepayers with the company’s 10.5% return on equity, or money invested in power infrastructure.

Delmarva Power said in a statement that afternoon it shares these affordability concerns, but investments have already been made to “strengthen reliability.” The company said it remains focused on efforts to drive down its supply costs, which it argues have driven 90% of consumer bill increases since 2024.

Meyer’s calls also join several bills passed last year and this session – ranging from rate regulations to expanding eligibility for energy credits – with many already signed into law. Yet, residents remain frustrated and unlikely to feel any impact quickly.

Looking even farther ahead, lawmakers are also still considering future energy sources to help relieve heavy consumer burden.

So, what have Delaware leaders done so far – and what’s left to tackle?

What legislation has passed, with more still on the table

There are 14 pieces of legislation centered on energy and utilities now filed in the General Assembly in 2026 alone, according to state Sen. Stephanie Hansen.

Some highlights include:

Senate Bill 239, which lifts the 8% cap on net energy metering
Senate Bill 326, which looks to limit Delmarva’s infrastructure spending, enhance rate transparency and utility communication and caps how much utilities can claim with interim rates, to name a few provisions. This bill builds off previous legislation signed into law last year, which limits yearly capital costs retrievable by Delmarva, as previously reported by Delaware Online/The News Journal.
House Bill 310, which would exempt data centers from corporate tax breaks or fee reductions granted to new businesses under the state’s Blue Collar Jobs Act, according to Hansen, a co-sponsor of the bill.
House Bill 233, which mandates certain utilities to set “a separate rate class” for large energy users. Primary bill sponsor Rep. Frank Burns told attendees during a June 15 press conference this bill would take all the expenses created by large-scale data centers, “puts them in a bucket” and ensures those centers pay that price. Without it, the Pike Creek Democrat said, Delawareans would see an estimated 80% increase on their electric bills.

Six of those bills – including Senate Bill 210, Senate Bill 239, Senate Bill 276, Senate Bill 321, House Bill 269 and House Concurrent Resolution 94 – have cleared both chambers.

Two of these bills, Senate Bill 210 and House Bill 269, were signed by Meyer earlier this spring, offering solutions related to interconnections.

Senate Bill 210 – also known as the legislature’s “interconnection bill,” according to Hansen – states that so long as a point of interconnection is located within the Delmarva Power region and under their jurisdiction, it can be connected. This will make room for 10 community solar-related projects, a total of roughly 30 megawatts, to come online with enough to power approximately 30,000 homes, said the Middletown Democrat.

In turn, House Bill 269 clarifies interconnection rules for electric suppliers must match with the most recent procedures from the Interstate Renewable Energy Council.

On June 10, Meyer also signed Senate Bills 239 and 276 into law, removing the 8% cap and allowing electric cooperatives discretion to provide electricity to “large load” electric users.

Others, like House Bill 310, have managed to clear their chamber of origin, according to Hansen, while some have yet to appear before committee.

Lawmakers have also largely focused on cost and the potential impact of data centers.

These centers often require mass amounts of infrastructure to operate, such as coal and natural gas power plants, according to the Environmental and Energy Studies Institute. Additionally, because they have “an immense electricity demand,” they require new substations to function, which in turn can cost a lot of money to build, according to Russell Zerbo of the Clean Air Council.

As a result, lawmakers have not only focused on utility costs, but also how data centers could impact ratepayers and overall reliability, Hansen said.

Delaware has faced its own share of data center proposals. One proposal, called Project Washington, was set to occupy roughly 6 million square feet over two campuses in Delaware City, with approximately 11 buildings and several neighboring electrical fields.

The proposal faced a major setback, however, when the Coastal Zone Industrial Control Board upheld the state Department of Natural Resources and Environmental Control’s decision to bar it this past spring.

What has been done in other states?

Faced with sky-high energy costs, Delaware’s neighbor states have sprung into action.

New Jersey has enacted several initiatives to address utility cost hikes. One of Gov. Mikie Sherrill’s first executive orders froze rate spikes and delivered ratepayer relief.

The second expanded programs to look into new power sources in-state, equating more power with lower costs.

Pennsylvania lawmakers introduced a legislative package with the goal of driving down energy costs on May 1. Efforts include data center regulations, updating the state’s electric grid and pushing for the development of “a virtual power plant,” as reported by the Pennsylvania Independent.

Fellow neighbor Maryland also enacted the Utility RELIEF Act, which aims to save residents at least $150 on energy bills on a yearly basis. The act also requires data centers to cover any expenses related to energy infrastructure adjustments, rather than let Maryland families take the fall.

Delaware similarly has two programs in place: the state Energy Fund and the Delmarva Customer Relief Fund.

The energy fund assists any eligible customers – not including Delmarva customers – if their income falls under 350% of the federal poverty level, or $55,860 for a one-person household.

In contrast, Delmarva’s relief fund provides upward of $500 via Energize Delaware and the United Way of Delaware. This is one of many relief funds and programs available designed to support lower-income consumers across the state.

Among the laws signed by Meyer last year included barring the use of consumer funds for non-utility-related purposes; mandating transparency regarding regional energy grid guidance participation; and ensuring consumers benefit from surplus energy credits.

However, because these bills were just signed into law last year, consumers most likely won’t see the results of some of these bills right away. It takes time to put these regulations in place, according to Dustyn Thompson of the Delaware chapter of the Sierra Club.

Hansen said in a statement that legislators understand supply and demand has been “crushing,” hence why the General Assembly has been acting to get these bills passed and onto Meyer’s desk as soon as possible.

“We’re trying to attack this from many different angles,” she continued during the June 15 press conference on the subject. These angles include direct assistance with paying bills – such as the energy fund – and a greater “systemic approach,” scaling back on how much money utilities ask to be recovered.

The same press conference saw Meyer announcing he will join a petition and call on the Public Service Commission to “freeze rates immediately,” as well as implement penalties for delayed action on solar power.

He also voiced support for several bills headed to his desk.

But the work is far from over.

What more can Delaware do?

While the priority has largely been on costs and data centers, legislators have also directed their attention to other available energy sources.

One effort has been the Delaware Nuclear Energy Feasibility Task Force. Established in 2025, this group is responsible for looking at the benefits, dependability and potential impact of using small modular reactors in the First State.

The task force is scheduled to present its final report by the end of July, detailing a direction for Delaware with this energy source, according to Hansen.

However, when it comes to this and other energy sources, a long road lies ahead.

Take offshore wind, for example. After much back-and-forth last session, lawmakers passed an effort that overturned the Sussex County Council’s rejection of a permit needed for US Wind to build a substation critical to plans to erect more than 100 wind turbines off the Delmarva coast, which went into effect earlier this year.

Despite this, President Donald Trump has remained firmly against wind turbines, even signing an executive order temporarily putting permits, approvals and energy lease sales for offshore wind projects on hold last year.

And while the Delmarva project is ready to go, it is still being held up at the federal level, according to Hansen.

“Rather than spending money to build something, we’re spending that to not build something,” Thompson said.

Even if the federal government supports the project, the Sierra Club leader estimates it will take somewhere between five and six years to get off the ground.

As for natural gas or nuclear energy – considered “the largest source of clean power” in the country, according to the U.S. Department of Energy – Hansen said that can take even longer.

Large natural gas turbines usually come with a four-to-eight year waiting period, according to the lawmaker.

“You can’t just buy them off the shelf,” she said.

Additionally, building a nuclear power plant is a multi-million-dollar undertaking, often with construction challenges and long lead times.

In neighbor state New Jersey, lawmakers also passed a bill that would expand nuclear power throughout the state. However, one expert estimates it could take between 10 and 20 years for that power to go online.

Hansen herself made a similar projection, saying it could take eight to 10 years to get up and running in Delaware, maybe more. So, she said it’s also crucial lawmakers look into energy that won’t require as much time to get online, specifically solar.

Hansen previously backed a bill that would have allowed the use of small, plug‑in solar power systems in the First State earlier this spring, a technology gaining traction as energy costs rise nationwide.

Because it is still a new technology in the United States, and doesn’t have set safety standards in place, the bill is now a resolution, Hansen said.

This resolution requests the Delaware Sustainable Energy Utility and the Natural Resources Department conduct a study on the safety and use of balcony and plug-in solar devices. These entities must share a report on the study by Jan. 26, 2027.

Looking ahead, Hansen said lawmakers need to do everything they can to bring “all-size solar” to the state, whether it be community, utility or rooftop. This will help bring down energy costs in the meantime as lawmakers wait for other energy projects to take off.

Because, as Hansen explained, time is of the essence.

“We need more generation,” she said. “And we need it now.”

(This story has been updated to change a video.)

Olivia Montes covers state government and community impact for Delaware Online/The News Journal. If you have a tip or a story idea, reach out to her at omontes@delawareonline.com.

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