DE Gov. Signs DE Competes Act

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Delaware Governor Jack Markell signed the Delaware Competes Act into law today, changing the way corporate income tax is calculated in the state. The legislation passed nearly unanimously in the General Assembly earlier this month. Previously, three factors were used to determine what portion of a company’s income is taxed by the state – payroll, property holdings in, and total sales in Delaware. As a result of the Delaware Competes Act, only sales will be factored into the calculation, meaning companies won’t be, in effect, penalized for adding payroll and property within the state.

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