CHAPTER 487
FORMERLY
SENATE BILL NO. 484
AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE; 64 DELAWARE LAWS, CHAPTER 460, AS AMENDED; AND 70 DELAWARE LAWS, CHAPTER 219, RELATING TO DELAWARE TAXES.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend §2010, Title 30 of the Delaware Code, by striking the year "1997" as the same appears in subsections (4) and (5) of said section and substituting in lieu thereof the year "2002".
Section 2. Amend § I2 of 64 Delaware Laws, chapter 460, as amended by 67 Delaware Laws, chapter 120; 68 Delaware Laws, chapter 6; and 68 Delaware Laws, chapter 202, by striking the year "1997" as the same appears in said section and substituting in lieu thereof the year "2002".
Section 3. Amend §2011(b), Title 30 of the Delaware Code, by striking the phrase "Two hundred fifty dollars" as the same appears in paragraphs (I) and (2) of said subsection and in each instance substituting in lieu thereof the symbol and figure "$400".
Section 4. Amend §2021(a), Title 30 of the Delaware Code, by striking the phrase "1500' for '$250"' and substituting in lieu thereof the phrase "1650' for $400.
Section 5. Amend §2011(1), Title 30 of the Delaware Code, by striking the phrase "'Five hundred dollars' for Two hundred fifty dollars"' as it appears in said subsection and substituting in lieu thereof the phrase '1650' for1400"".
Section 6. Amend §2021(d), Title 30 of the Delaware Code, by striking the phrase '$750' shall be substituted for 1500' as it appears in paragraph (I) of said subsection and substituting in lieu thereof the following phrase: '"$900' shall be substituted for1650'".
Section 7. Amend §6 of 70 Delaware Laws, chapter 219, by striking the year "1997" as it appears in said section and substituting in lieu thereof the year "2002"
Section 8. Amend §2041(b), Title 30 of the Delaware Code, by striking the symbol and figure 1250" each time they appear in said subsection and substituting in lieu thereof in each instance the symbol and figure "$400".
Section 9. Amend §2042(b), Title 30 of the Delaware Code, by striking said subsection in its entirety and substituting in lieu thereof a new subsection (b) to read as follows:
"(b) The amount of the credit allowed under subsection (a) of this section shall, for such tax year, be the amount of credit allowed under § 2011 of this title applied with respect to such qualified facility by substituting '$650' for 1400' in § 2011(6)(1) and (2) of this title; or, in the event the taxpayer also qualifies for credit under § 2021 of this title, by substituting '$900' instead of '$650' for '$400' in § 2011(6)(1) and (2) of this title."
Section 10. Amend §2043(b), Title 30 of the Delaware Code, by striking said subsection in its entirety and substituting in lieu thereof a new subsection (b) to read as follows:
"(b) The amount of the credit allowed under subsection (a) of this section shall, for such tax year, be the amount of credit allowed under §20I 1 of this title applied with respect to such qualified facility by substituting '$650' for '$400' in §2011(b)( I) and (2) of this title; or, in the event the taxpayer also qualifies for credit under §2021 of this title, by substituting '$900' instead of '$650' for '$400' in §2011(b)(I) and (2) of this title."
Section 11. Amend §2044(b), Title 30 of the Delaware Code, by striking said subsection in its entirety and substituting in lieu thereof a new subsection (b) to read as follows:
"(b) The amount of the credit allowed under subsection (a) of this section shall, for such tax year, be the amount of credit allowed under §2011 of this title applied with respect to such qualified facility by substituting '$650' for '$400' in §201 I (b)( I) and (2) of this title; or, in the event the taxpayer also qualifies for credit under §2021 of this title, by substituting '$900' instead of '$650' for'$400' in §201 1(b)( I) and (2) of this title."
Section 12. Amend §2010(3), Title 30 of the Delaware Code, by designating paragraph It. as paragraph k. of said subsection, by striking the word "or- as it appears at the end of paragraph g. of said subsection (3), and by adding to said subsection (3) a new paragraph j. to read as follows:
"j. Any activity more than 50% of whose annual gross receipts are derived front aviation services. The term "aviation services" means a business conducted by an employer in Delaware (i) at an airport owned or operated by (A) the State, (B) any political subdivision of the State. (C) any agency or instrumentality of the State or of its political subdivisions, or (D) a bi-state authority created by a compact between states and approved by the Congress of the United States. I employing at least 100 qualified employees, (iii) constituting the inspection. maintenance, repair, overhaul or remanufacture of aircraft, aircraft engines and other aircraft components or parts: the performance of retrofits of aircraft engines and other components to aircraft and the performance of other modifications to aircraft (including interior and exterior modifications, whether to new or used aircraft, and the design. engineering, installation and certification of such modifications): the sale of aircraft components or parts and lubricants or other consumable goods in connection with the foregoing activities; or any combination of the foregoing activities; or"
Section 13. Amend §2010(3), Title 30 of the Delaware Code, and by adding to said subsection new paragraphs h. and i. to read as follows:
"h. Any activity more than 500/0 of whose annual gross receipts arc derived front the sale at wholesale of computer software other than custom software by the developer of such software.
i. Telecommunications services which. for purposes of this chapter. shall mean the administration, supervision, maintenance, repair and deployment of the physical infrastructure associated with the provision of telecommunications services, including but not limited to, the receipt of requests for service and the dispatch of repair and maintenance personnel: the coordination, installation and record activity for the initiation of telecommunication services, including the installation of equipment: the maintenance of records and operations information regarding a telecommunications system or network; engineering and construction services related to the deployment of infrastructure for a telecommunications system or network."
Section 14. Amend §2010(3), Title 30 of the Delaware Code, by striking the reference "g." as It appears in redesignated paragraph k. of said subsection and substituting in lieu thereof the reference "j."
Section 15. Amend §201 1(a), Title 30 of the Delaware Code, by striking the-phrase "Title 26" as it appears in said subsection and substituting in lieu thereof the phrase "Title 26, unless such public utility is a provider of telecommunications services as described in §2010(3) of this title".
Section 16. Amend §201 1(b), Title 30 of the Delaware Code, by adding to said subsection a new paragraph (3) to read as follows:
"(3) In the case of a qualified facility used in connection with the qualified activity described in §2010(3)i., the amount of the credit allowable under subsection (a) of this section with respect to such a facility for each of the taxable years falling within the ten-year life of such credit shall be determined by the application of paragraphs (1) and (2) of this subsection, except that:
i. The amount of investment required per qualified employee for purposes of credits determined under paragraph (I) of this subsection shall be $15,000 rather than $40,000, and the amount of minimum required investment determined under subsection (a) of this section shall be $750,000 rather than $200,000;
ii. No amount of investment may be included in any of the calculations required under paragraphs (2) or (3) of this subsection unless the taxpayer has elected that any such amount of investment shall not be also considered in determining the extent to which the taxpayer has satisfied any obligation it might have under 26 Del, C §711; and
iii. The minimum number of qualified employees required for purposes of credits determined under paragraph (I) of this subsection shall be 50 rather than 5, provided further that such 50 qualified employees shall be in addition to the number of qualified employees employed by the taxpayer within this State as of December 31, 1996, and no credit shall be allowed under paragraph (2) of this subsection until the taxpayer shall have employed at least 50 qualified employees in addition to the number of qualified employees employed within this State as of December 31, 1996."
Section 17. Amend §201 1(k)(2), Title 30 of the Delaware Code, by adding after the words "activity or and before the word "manufacturing" as they appear in said paragraph the words and punctuation "aviation services," and by adding after the ',Maw "respectively in" and before the reference "§2701(2)" as they appear in said paragraph the reference and punctuation "§2010(3)j.,".
Section 18. Amend §2012(a), Title 30 of the Delaware Code, by deleting the words and numbers "2903 or 2904" as they appear in said subsection and substituting in
lieu thereof the words and numbers "2903, 2904 or, in the case of an activity described in § 2010(3)j., 2905".
Section 19. Amend §2012(c), Title 30 of the Delaware Code, by adding after the phrase "set forth in §2902(c)(4)" and before the word "or immediately following such phrase the phrase "and §2905(h)".
Section 20, Amend §2022(a), Title 30 of the Delaware Code, by deleting the words and numbers "2903 or 2904" and substituting therefor the words and numbers "2903, 2904 or, in the case of an activity described in §2010(3)j., 2905".
Section 21. Amend §2022(c), Title 30 of the Delaware Code by deleting the phrase "§§2902(e)(1),(3) and (5) and 2702(b)(1) and (3)" and substituting in lieu thereof the phrase: "§§2902(c)(1),(3) and (5); 2702(1)(1) and (3); in the case of an activity described in §20I 0(3)j., 2905(b)(1) and (3), and ".
Section 22. Amend §2010(3)d., Title 30 of the Delaware Code by striking the letters and punctuation "a.-g." as they appear in said paragraph and substitute in lieu thereof the letters and punctuation "a.-j."
Section 23. If any provision of this Act or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the Act which can he given effect without the invalid provision or application, and to that end the provisions of this Act arc declared severable.
Section 24. Sections 12, 14, 17, 18, 19, 20, 21. 22. and 23 of this Act shall he effective with respect to property placed in service after June 30, 1996. and before January I. 2002. All other provisions of this Act shall he effective with respect to property placed in service after December 31. 1996. and before January I. 2002.