​Shaping Delaware’s Business Landscape for Success

By Tyler Micik

It's a new year and as the sound of holiday bells subsides, the ringing of bells within Legislative Hall begin again, signaling the start of the second leg of the 152nd Delaware General Assembly.

The State Chamber looks forward to working with members of the Delaware General Assembly to achieve our 2024 policy priorities. Our policy priorities are a coordinated list of feedback from our members that includes items we’ve identified as critical because they impact not just our members but the business community at large—regardless of size and industry. Please keep in mind this list is not exhaustive, and it’s designed to be a living document that’s ever-changing to meet the needs of the business community. I’d like to take this opportunity to highlight a couple of topics mentioned in this list.

FRANCHISE LAWS
Unlike the old saying “Don’t shoot the golden goose,” some members of the General Assembly are proposing legislation that would shoot Delaware’s “golden goose.” Incorporation fees and unclaimed property revenues make up almost half of Delaware’s net general fund revenues. Delaware is internationally recognized as an incorporation destination due to its business-friendly tax laws and Court of Chancery. Corporations registered in Delaware don’t pay corporate income tax and corporate lawsuits are settled by the Court of Chancery—a non-jury trial court with a long history dating back to 1792, comprised of judges specializing in corporate law. For these reasons, companies choose to call Delaware their corporate home despite intriguing offers to go elsewhere, and other states’ efforts to try and duplicate Delaware’s laws.

The introduction or passage of any policy directed at undermining these laws will cause corporations to leave, other states to reap the rewards, and Delawareans will be asked to make up for lost revenues through other means like a sales tax, which Delaware—along with only four other states—does not have.

PERMITTING
Delaware has made significant improvements to its permitting processes, and we thank the Governor and the General Assembly for doing so, but more work must be done.

Many businesses are good stewards of the environment and the communities they serve. The perception by some to the contrary, in most cases, is inaccurate and benefits no one. We hope that policymakers will support laws and law-making processes that are collaborative and allow for certain and predictable comment periods for the business community and all stakeholders so that real progress can be achieved. We can’t accomplish anything, especially the State’s clean energy goals, if project timelines are unclear and the obligations placed on businesses are overburdensome.

The decisions made this year by those in the General Assembly and by Delaware voters in the fall will have lasting impacts on Delawareans and Delaware’s reputation as a business-friendly state. As the state’s largest business advocacy organization, the Delaware State Chamber of Commerce is uniquely positioned to bring parties together to solve problems, create jobs, promote business, and improve the quality of life for all Delawareans. In that spirit, we look forward to continuing to advocate for our members in 2024.

---