Delaware Film Tax Credit

Delaware's Current Film Incentive Status

Delaware does not currently have an active state film tax credit or rebate program. As of early 2026, Delaware is the only state in its region without any form of film production incentive, a fact that Governor Matt Meyer acknowledged directly when he introduced a proposal to create one in his fiscal year 2027 budget plan. Productions filming in Delaware operate without a state financial incentive, though the state's unique geography and legal environment continue to attract certain types of production.

Governor Meyer's Proposed $10M Film Tax Credit (FY2027)

In January 2026, Governor Matt Meyer proposed a $10 million film tax credit as part of his $6.9 billion fiscal year 2027 budget recommendation. The proposal is specifically designed to help Delaware compete with neighboring states that have used film incentives to attract major productions. As a proposed budget item, the credit would need legislative approval to become law. Productions should monitor this proposal through the Delaware General Assembly as the FY2027 budget process moves forward in 2026.

House Bill 237: Delaware Entertainment Investment Tax Credit

Separately from the Governor's budget proposal, House Bill 237 was introduced in the Delaware General Assembly to create a comprehensive entertainment incentive. HB 237 would establish the Delaware Entertainment Investment Tax Credit, offering:

• 30% tax credit on qualified expenditures exceeding $500,000 per tax year

• Credits that are transferable, sellable, or can be carried forward for up to 10 years

• Annual maximum credit amount of $25 million

• Eligible industries: film, television, esports, and video game development

If enacted, HB 237 would create one of the more flexible incentive structures in the mid-Atlantic region, with transferability and a 10-year carry-forward period providing production companies and investors significant options for utilizing the credit. As of early 2026, HB 237 had not yet been enacted. Productions should verify the bill's current status through the Delaware General Assembly.

What Alternatives Exist for Delaware Productions

Without an active incentive program, productions considering Delaware should plan budgets with no credit recovery on qualified spend. Some practical considerations for Delaware productions include:

• Delaware's corporate-friendly legal environment and zero sales tax make certain business structures more efficient

• The state's location between Philadelphia and the Washington, D.C. area provides access to major metropolitan markets for talent and crew

• Wilmington's historic architecture and waterfront areas offer shooting locations distinct from other mid-Atlantic markets

• Delaware's relatively modest size means lower logistics costs for productions based in the region

About Delaware's Film Industry

Delaware's proximity to major production markets in New York, Philadelphia, and Washington, D.C. has historically meant that productions in the region base their operations in neighboring states with more robust incentive programs rather than Delaware itself. States like Maryland, Pennsylvania, and New Jersey have offered film incentives that make them more financially attractive for mid-Atlantic productions.

The legislative activity in early 2026 signals a genuine interest from Delaware policymakers in reversing this trend. If either the Governor's $10 million proposal or HB 237 becomes law, Delaware could enter the competitive landscape for film production incentives in the mid-Atlantic corridor. Productions planning projects with a 2026-2027 timeframe should monitor both proposals closely and contact the Delaware Film Office for the most current status.