New Report Ranks Delaware #3 for Most Favorable Corporate Tax Climate in U.S.
Delaware ranks among the top three states nationwide for corporate tax favorability, according to a new report by the Tax Foundation and KPMG.
- Wilmington-Newark, DE-MD (1888PressRelease) May 06, 2021 - Delaware ranks among the top three states nationwide for corporate tax favorability, according to a new report by the Tax Foundation and KPMG.
Delaware Prosperity Partnership and the Delaware Business Roundtable served on the advisory committee for a national study conducted by the Tax Foundation and KPMG to rank corporate tax favorability across the United States.
The report, Location Matters, assesses the corporate tax burden in two categories of cities – major and mid-sized – throughout all 50 states, accounting for the wide range of tax impacts faced by businesses such as property tax, income tax, sales tax and others. The comprehensive study compared the full tax burden faced by businesses in all 50 states.
The report ranks states within eight business models: Corporate Offices; Research & Development; Tech Centers; Data Centers; Distribution Centers; Capital-Intensive Manufacturing; Labor-Intensive Manufacturing; and Shared Services. It also provides overall ratings that combine all business models cited.
“Delaware is a great place for businesses large and small to put down roots, grow and create good-paying jobs,” said Governor John Carney, who is co-chair of the DPP Board of Directors. “This Location Matters report underscores our commitment to making sure that Delaware’s tax structure is attractive to small and large businesses that may choose Delaware for growth and expansion.”
Fellow DPP Board co-chair Rod Ward, who is president and chief executive officer of Delaware- headquartered international company CSC, agreed.
“Corporate tax structure is an important variable for businesses considering a new location,” Ward noted, “and the Location Matters report validates an important variable in Delaware’s value proposition for businesses contemplating their next move.”
Dr. Janice Nevin President and CEO of ChristianaCare and chair of the Delaware Business Roundtable, elaborated.
“Creating long-term, well-paying jobs is a critical part of establishing a growing economy that contributes to the wellbeing of all Delawareans,” Nevin said. “This study confirms that our state is very competitive when it comes to corporate taxes, which helps to provide a good foundation for economic growth. We must also continue to focus on the other variables that are essential to creating job opportunities, including expanded broadband availability, infrastructure improvements, and education and training.”
Overall, Delaware outpaced its neighboring states in the Mid-Atlantic region for most sector types in both the new and mature business categories. Cities were cohorted into one of two categories: Tier 1 cities are major cities in a state, and Tier 2 cities are mid-sized cities usually with a population of less than 50,000. The statewide study ranked each state and highlights each state’s tax favorability performance including their Tier 1 and Tier 2 cities. In Delaware, the two cities ranked in the Location Matters report are Wilmington in the Tier 1 major city category and Dover in the Tier 2 mid-sized city category.
Key findings from the nationwide survey reveal:
• Delaware ranks #2 for overall corporate tax favorability for new firms.
• Delaware ranks #3 for overall corporate tax favorability for mature firms.
• Delaware ranks #1 nationwide for tax favorability in the manufacturing sector.
About Delaware Prosperity Partnership
Delaware Prosperity Partnership leads Delaware’s economic development efforts to attract, grow and retain businesses; to build a stronger entrepreneurial and innovation ecosystem; and to support private employers in identifying, recruiting, and developing talent. The DPP team works with site selectors, executives and developers focused on where to locate or grow a business and helps with reviewing potential sites, cost-of-living analyses and funding opportunities, including available tax credits and incentives. DPP advances a culture of innovation in Delaware, working with innovators and startups to spotlight and celebrate successes and connect them with the resources they need to succeed. DPP and its partnerships throughout Delaware support and advance the missions of companies of all sizes and sectors. For more information, visit choosedelaware.com.
About the Delaware Business Roundtable
The Delaware Business Roundtable is a non-partisan, volunteer consortium of CEOs whose companies collectively employ over 75,000 people in Delaware. Since its inception in 1981, the Roundtable’s broad mission is to enhance the quality of life in Delaware by promoting commerce, job creation and select public policy issues. In recent years, the Roundtable has been a leading supporter of public education transformation and entrepreneurs in Delaware.
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