Delaware · Investment / Jobs · DE-BCJA-001
Blue Collar Jobs Act Credits
Publication revised September 24, 2026. Sourcebook page 73.
Credit amount / calculation
$500 per qualifying employee plus $500 per $100,000 of qualifying investment, generally for ten years; annual credit use limited to 50% of tax liability.
Business fit and eligible activity
Qualified manufacturing expansions creating jobs and facility investment can receive state credits after approval. Hiring, wages or qualifying training; where the program also requires investment, satisfy both tests.
Illustrative business benefit
An eligible mill invests $400,000 and adds five qualifying jobs. The annual calculation is 5 x $500 + 4 x $500 = $4,500. Over ten compliant years that is $45,000 before tax-liability limits.
Timing / first action
Seek approval before signing a purchase order, contract, lease or other binding commitment. Meet the minimum five-job and $200,000 investment tests (at least $40,000 per qualifying employee), and obtain approval before claiming.
Official sources
- Delaware Division of Revenue — Blue Collar Jobs Act (revenue.delaware.gov)
Related programs
Research and Development Tax Credit
10% of Delaware research expenses above the base
Qualified Delaware research can generate a state credit for a wood-products manufacturer.
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally
Potentially relevant when a forest-products facility owns qualifying zero-emission generation or energy-storage property.
Clean Electricity Production Credit (Internal Revenue Code §45Y)
Production-based
Alternative to the investment credit for owners/operators of qualifying clean-electricity facilities; potentially relevant to qualifying on-site generation.
Credit for Increasing Research Activities (Internal Revenue Code §41)
Regular research-credit method
A sawmill, secondary manufacturer or biomass business can qualify when it performs genuine technological experimentation to improve a product or process.