The Delaware Senate today approved a banking industry tax cut and job creation scheme proposed last month by Governor Jack Markell.


The Delaware Senate today approved a banking industry tax cut and job creation scheme proposed last month by Governor Jack Markell.

Senate Bill 91 reduces Delaware’s bank franchise tax rates and establishes a incentive plan that would give banks and financial services companies tax credits of $1,250 per newly hired employee, so long as the company hires at least 200 new workers and invests a minimum of $15,000 per new job.

Estimates from the Controller General’s Office say the plan will cost the state $3.4 million in fiscal year 2012 and $8.5 million the year after that.

Funding to cover the lost revenue will come from an estimated surplus in next year’s state budget.

Senate President Pro Tem Anthony DeLuca (D-Varlano) introduced the bill in his chamber and it passed with no discussion or dissent from other members.

“This is part of the administration’s package and it has been accounted for in the budget,” DeLuca said.

Other tax-cut legislation endorsed by Markell passed the House earlier this month and are awaiting Senate votes.

Those bills represent $22.4 million worth of revenue and include these provisions:

A 3-percent personal income tax rate cut for Delawareans earning $60,000 or more per year. A 3-percent across-the-board gross receipts tax rate cut. A 15 percent electric and natural gas utility tax rate cut, plus a 17.5-percent utility tax rate cut for large manufacturers.