By Evan R. Park

Delaware continues to reinforce its position as a national leader in financial services and corporate innovation. In a recent meeting with the Governor’s office, the Delaware State Chamber of Commerce was briefed on a forward-looking package of legislation aimed at modernizing the state’s banking framework and keeping it competitive in a rapidly evolving financial landscape.

This week, Senator Spiros Mantzavinos introduced two key pieces of that package: Senate Bill 16 and Senate Bill 19.

These bills represent early steps in a broader effort to update Delaware’s banking laws—an initiative focused on supporting innovation, improving regulatory clarity, and attracting continued investment in the state’s financial sector. The State Chamber is currently monitoring both of these bills. 

For Delaware’s business community, particularly those in financial services, fintech, and corporate governance, these developments are worth watching. Modernized banking laws can create new opportunities for growth, improve operational efficiency, and strengthen Delaware’s position as a hub for financial activity.

Senate Bill 16 — Delaware Banking Modernization Act
This bill focuses on updating Delaware’s existing banking structure to reflect how the industry actually operates today.

What it does:

• Recognizes digital assets: Brings things like cryptocurrency into the fold for banking and fiduciary activities, giving institutions clearer footing to operate in this space.
• Adds flexibility for governance: Allows banks and trust companies to adjust their structures more easily as business and regulatory needs change.
• Makes it easier for out-of-state banks to come to Delaware: Lowers some of the barriers for institutions looking to relocate or expand here.
• Expands the authority of the State Bank Commissioner: Gives regulators more tools to oversee and respond to changes in the industry.
• Encourages more competition in the trust space: Removes certain restrictions, opening the door for more players and, ideally, better services.

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Why it matters:

• Creates more room for innovation, especially in fintech
• Could bring new businesses and jobs into Delaware
• More competition could lead to better options and pricing

At its core, this bill is about keeping Delaware aligned with where banking is going, not where it’s been.

Senate Bill 19 — Payment Stablecoin Act
This bill shifts the focus to digital assets, specifically stablecoins. It would create a clear regulatory framework for companies issuing stablecoins or offering digital asset services in Delaware.

What it does:

• Sets clear rules for operating: Establishes licensing requirements, capital standards, and reserve expectations.
• Builds trust in the market: Requires safeguards like anti-money laundering protocols and data protections.
• Supports broader adoption: A defined framework can make businesses and consumers more comfortable using stablecoins.
• Aligns with broader regulatory trends: Helps Delaware companies operate across state and federal lines more easily.

Why it matters:

• Gives companies clarity instead of guesswork
• Positions Delaware as a serious player in digital assets
• Creates opportunity but also new compliance expectations

These bills point to where things are headed. Delaware is continuing to evolve its approach, not just maintain the status quo. For businesses, this is something to keep an eye on. The outcome could have a real impact on how financial services operate in the state. As always, please email me at [email protected] if you have any questions. 

By Evan R. Park

As Delaware policymakers consider House Bill 315, introduced by Rep. Kim Williams, banks and payment networks are raising concerns about unintended consequences. While the bill aims to reduce costs for some businesses, the industry warns it could create broader challenges across the payments system that ultimately impact merchants and consumers.

What the Bill Would Do
House Bill 315 would prohibit the collection of interchange fees on the gratuity portion of credit and debit card transactions. Banks and card networks emphasize that interchange fees are a foundational component of the electronic payments system, supporting fraud prevention, cybersecurity, transaction processing, and consumer protections.

Full-service restaurant wait staff often earn a base wage of just $2.23 per hour, with most of their income coming from tips. Currently, when customers pay with credit cards, servers receive their full tip, while restaurants pay roughly 2% in processing fees on the total transaction. This bill would eliminate that fee on the gratuity portion, amounting to a few cents of savings per transaction. 

It’s also worth noting that many restaurants already account for payment processing fees when they price their menus. The cost of a meal reflects everything it takes to run the business — not just the ingredients, but wages, rent, utilities, and credit card fees. Those expenses are already built in.
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Key Concerns with the Legislation
From the banking industry’s perspective, carving out a specific portion of a transaction (such as tips) introduces operational and structural challenges:

• System Limitations: Today’s payment systems process transactions as a single total, not itemized components. Separating out tips for fee purposes would require system upgrades, adding cost and complexity.
• Compliance Burden: The bill allows for retroactive reporting (up to 180 days) and refunds, which could create additional compliance and operational challenges for financial institutions and processors.
• Pricing Shifts: Limiting interchange fees on one portion of a transaction could lead to adjustments elsewhere in the system, potentially increasing costs in less visible ways.

Broader Economic Implications
Banks also note that interchange fees help fund benefits that consumers and businesses rely on, including fraud protection, rewards programs, and secure transaction infrastructure. Limiting these fees could have ripple effects, including: 

• Reduced incentives for card issuers to offer rewards or low-cost banking services.
• Potential tightening of credit availability, particularly for small businesses and consumers with limited credit histories.
• Increased costs in other areas of payment processing that could offset any anticipated savings.

While some merchants, particularly in the restaurant and hospitality sectors, may see modest savings, banks argue those benefits may be uneven and offset by new costs, including potential point-of-sale system updates. 

Current Status
House Bill 315 was released from the House Economic Development, Banking, Insurance and Commerce committee

The Ongoing Conversation
The Delaware State Chamber continues to monitor the bill and gather input from stakeholders and our members. The banking sector is encouraging a collaborative approach to ensure any policy changes are thoughtful and balanced.

As the conversation continues, input from Delaware’s business community will be key to shaping outcomes that support both economic growth and financial stability. Reach out to me at [email protected] if you have any feedback. 

By Evan R. Park

Tuesday, March 10th marked the General Assembly's return to Legislative Hall after the Joint Finance Committee break, and lawmakers were eager to introduce and begin working on several pieces of legislation that will impact Delaware businesses.

Senate Activity

Senate Bill 1 (SB 1) – Primary Care Insurance Reform
Introduced by Sen. Bryan Townsend, Senate Bill 1 focuses on primary care insurance coverage and healthcare delivery. Supporters argue that SB 1 aims to lower healthcare costs, expand access to primary care, and improve patient outcomes statewide. Opponents, however, contend that the bill reintroduces regulatory language that was previously removed from House Bill 350 during the 152nd General Assembly. Critics believe the proposal could create new and potentially burdensome regulatory requirements.

SB 1 has been assigned to the Senate Health and Social Services Committee, where it will receive further review. We are closely monitoring its progress to assess potential impacts on employer-sponsored healthcare coverage and regulatory compliance.

Senate Bill 205 (SB 205) – Oversight of Large Energy Users
Also drawing significant attention is Senate Bill 205, sponsored by Sen. Stephanie Hansen and released from the Senate Environment and Energy Committee on March 11.

The bill would require any company seeking to begin or expand operations that would use 100 megawatts (MW) of electricity or more to first obtain a Certificate to Operate (COP) from the Delaware Public Service Commission. The proposal is designed to increase regulatory oversight of large-scale energy users, particularly data center developments that have been proposed in Delaware.

The Delaware State Chamber opposes SB 205 due to concerns that the additional regulatory hurdle could discourage large-scale investment and slow economic development opportunities in the state. The bill’s next step is consideration by the full Senate.

House Activity

House Bill 306 (HB 306)  – AI Disclosure Requirements
In the House of Representatives, Rep. Cyndie Romer introduced House Bill 306 addressing the use of artificial intelligence in consumer interactions.

The bill would make it unlawful for a business to engage in a commercial transaction with a consumer through computer technology under circumstances where a reasonable person would believe they are interacting with a human (unless the consumer is notified that the communication is with a computer.) While many stakeholders acknowledge the need for safeguards in the rapidly evolving AI landscape, the Delaware State Chamber has expressed concerns about provisions in the bill that create a private right of action, allowing lawsuits even when no harm or damages have occurred.

We continue to engage with Rep. Romer on the private right of action language, but she is steadfast in her belief that it needs to remain in the bill. We hope that she will include language creating a safe harbor for entities who meet disclosure requirements, as well as right-to-cure language. HB 306 is currently awaiting scheduling for consideration by the full House.

House Bill 310 (HB 310) – Changes to Business Tax Credit Eligibility
Rep. Debra Heffernan has introduced House Bill 310, which would exclude facilities using 30 megawatts or more of electricity from qualifying for certain state tax credits or license fee reductions tied to job creation and capital investment. As written, the bill would impact large energy-use projects, including potential data center developments.

The Delaware State Chamber is currently monitoring HB 310. Some opponents of the bill have suggested an amendment to increase the threshold to 100 MW, aligning it with the standard proposed in SB 205 (mentioned above).

This legislation, if unchanged, could reduce Delaware’s competitiveness in attracting major investment projects. HB 310 has been assigned to the House Revenue & Finance Committee.  

House Bill 315 (HB 315) – Credit Card Fees on Tips
Finally, Rep. Kim Williams introduced House Bill 315 (HB 315), which would prohibit payment card networks from charging transaction fees on tips included in credit card payments.

The proposal has sparked debate among industries. The Delaware Restaurant Association strongly supports the measure, arguing it ensures tipped employees receive the full value of gratuities. Meanwhile, the Delaware Bankers Association and the Delaware State Chamber of Commerce oppose the bill, citing concerns about its potential impact on the banking industry and broader financial systems.

HB 315 has been released from the House Economic Development Committee and is awaiting scheduling for a vote in the House of Representatives. Discussions with the bill’s sponsors are ongoing as stakeholders explore possible amendments.

The Delaware State Chamber will continue engaging with policymakers to ensure the perspectives of our member businesses are represented as these bills move through the legislative process. Please reach out to me at [email protected] if you have any feedback on these bills or other policy-related concerns. 

Contributed by Offit Kurman

On February 20, 2026 the U.S. Supreme Court issued a landmark decision in Learning Resources, Inc. v. Trump holding that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. The decision invalidates the reciprocal tariffs and trafficking/immigration tariffs imposed in 2025 under IEEPA and confirms that the power to impose tariffs lies with Congress. The Court did not prescribe a refund mechanism; that responsibility now falls to the U.S. Court of International Trade (CIT) and U.S. Customs and Border Protection (CBP).

Within hours of the decision, the Administration imposed a new 10% tariff under Section 122 of the Trade Act of 1974 (now 15%), effective February 24, 2026, and limited to 150 days (absent congressional action).
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This creates two immediate opportunities:

1. Refund claims for prior IEEPA tariffs (available to domestic and foreign companies)
2. Advisory and planning work related to new Section 122 tariffs and potential replacement regimes (Section 232/301)

Documents You Should Be Gathering:

• Entry summaries (CF 7501)
• Duty payment records
• Liquidation dates
• PSC filings
• Contracts allocating tariff responsibility
• ACE and ACH refund account status
• SKU lists affected by Section 122

Bottom Line:
IEEPA refunds are potentially significant. Deadlines are running. Section 122 tariffs create immediate planning needs.

If you import goods, manufacture overseas, distribute foreign products, or rely on cross-border supply chains, connect with Offit Kurman for consultation. Please direct any inquiries to G. Kevin Fasic at [email protected]. 

This post originally was posted on Offit Kurman's blog, at ​Tariff Litigation Updates: IEEPA Refund Claims & Section 122 Tariffs.

By Evan R. Park

​The second leg of the 153rd General Assembly convened January 13, 2026, with lawmakers prioritizing several high-impact issues, including hospital budget oversight (SB 213 with SA1), reforms to New Castle County nonresidential property assessments (SS1 for SB 228), education funding changes aligned with the Redding Consortium’s recommendations, review of the Governor’s Recommended Budget, and veto overrides of Senate Bills 63 and 75. The Joint Finance Committee began its annual budget hearings this week, which will continue through the first week of March.

There were several bills introduced in January that could impact the business community:

Senate Bill 205 with Senate Amendment 1 (Sponsored by Sen. Stephanie Hansen)
SB 205 with SA1 would require businesses planning to use 100 megawatts (MW) or more of electricity — or expanding operations to reach that threshold — to obtain a Certificate to Operate from the Public Service Commission. The bill was originally introduced with a 30 MW threshold, which Senate Amendment 1 increases to 100 MW. The Delaware State Chamber of Commerce (DSCC) opposes the legislation and has joined a coalition urging legislators to pause its advancement and convene stakeholders to address concerns collaboratively. The bill is currently in the Senate Energy, Transportation, and Environment Committee.

Senate Substitute 1 for Senate Bill 228 (Sponsored by Sen. Dan Cruce)
This substitute legislation consolidates SB 228 and its amendment to provide New Castle County additional time in 2026 to review and adjust non-residential property assessments, while still allowing sufficient time to prepare county and school tax bills due December 31, 2026. SB 228 has been released from House Administration and awaits consideration by the full House. DSCC continues to monitor its progress.

Senate Substitute 1 for Senate Bill 230 (Sponsored by Sen. Spiros Mantzavinos)
This substitute bill replaces the original version of SB 230 and removes language related to Section 284 of the Delaware General Corporation Law. The substitute bill clarifies which county financial officials have authority during property assessment disputes and allows them to require testimony or documents when defending how real estate values are calculated, particularly when using income-based or cost-based valuation methods. It also allows subpoenas to be enforced through the Superior Court if necessary. The bill has been released from the House Administration Committee, but action by the full House was deferred. At this time, the bill is unlikely to receive the necessary votes. DSCC is monitoring the legislation, 

House Bill 273 (Sponsored by Rep. Eric Morrison)
HB 273 would prohibit employers from asking about or taking action on an employee’s or applicant’s political preferences or contributions, except where required by law or when political affiliation is a bona fide occupational qualification. We are monitoring the progress of this legislation, which currently is in the House Labor committee.

House Bill 233 (Sponsored by Rep. Frank Burns)
This bill would require regulated utilities to create a separate rate for large energy-use facilities to prevent infrastructure expansion costs from being shifted to residential and small-business customers. The bill has been released from the House Natural Resources and Energy Committee. Ongoing discussions focus on defining “large energy use” and whether legislation could impact businesses currently operating in Delaware as well as those considering locating in the state.

House Bill 234 (Sponsored by Rep. Frank Burns)
HB 234 is the first leg of a proposed constitutional amendment that would establish a fundamental right for employees to organize and bargain collectively over wages, hours, and working conditions, while also protecting their economic welfare and workplace safety. DSCC is monitoring the bill closely. With the recent override of Senate Bill 63, DNREC’s decision related to data centers, and the dynamics of an election year, additional labor-supported legislation is expected. HB 234 is currently in the House Administration Committee.

Emerging Issue: AI Regulation
Rep. Cyndie Romer is preparing legislation to regulate AI chatbots used in retail transactions, with the goal of ensuring consumers are clearly informed when they are interacting with an AI system. A primary concern for businesses is the inclusion of a private right of action for individuals who believe they were harmed during such interactions. Rep. Romer has indicated she does not plan to remove this provision. DSCC is scheduling a meeting with the bill sponsor and stakeholders in February ahead of the bill’s anticipated introduction in March.

For questions or to discuss how these issues may affect your business, please reach out to me at [email protected]. I look forward to connecting with members and serving as a resource throughout the legislative session.

Bringing experience from both the public and private sectors, the Delaware State Chamber of Commerce is excited to welcome Evan Park as our new vice president of government relations. In this role, Evan leads the State Chamber’s advocacy efforts, working closely with policymakers, stakeholders, and our members and policy committees to advance a legislative agenda that supports Delaware’s business community and strengthens the state’s economic competitiveness.
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Where are you from originally, and what led you to build your career in the First State after graduating from the University of Delaware?
I am a Delaware native, born in Wilmington, and I spent the first 30 years of my life in New Castle County before moving downstate to Kent County. Delaware has always felt like home to me, so I never gave living anywhere else much consideration.
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What are you most excited about as you step into your new role with the Delaware State Chamber of Commerce?
I’m most excited to join the Delaware State Chamber of Commerce team, which has a strong history of leadership and influence in addressing the needs of Delaware’s business community.

You’ve held several roles in the policy field across both the public and private sectors. What initially drew you to this work, and what continues to motivate you?
I was initially drawn to government and policy work because I enjoy doing work that I believe is meaningful and ultimately helps make Delaware a better place.

Do you have a favorite quote or personal mantra that guides you in your work or life?
“Keep the main thing the main thing.”

What is your favorite spot in Delaware?
My favorite spot in Delaware is the beach in the summer. The traffic can be brutal, but it’s all part of the experience.

What’s something about you that might surprise people?
I’m really into plant collecting. I enjoy discovering new plant varieties and trying to keep them alive.

What podcast, playlist, or artist have you been listening to on repeat lately?
Podcast: The Right Time with Bomani Jones.
Playlist: Whatever my Apple algorithm tells me to listen to.
Artist: WAR, anything WAR.

If you could host a dinner party with any three people, living or dead, who would you invite and why?
My dinner guests would be Barack Obama, Trevor Noah, Denzel Washington, and Shaquille O’Neal. In my opinion, they are four of the most entertaining, interesting, and successful people in the world, and they also exude wisdom. The conversation would be incredible, and I know I would learn a lot.

The Delaware State Chamber of Commerce is happy to welcome Dae'Shawn Nixon as director of the Delaware State Chamber Foundation, our newly rebranded 501(c)(3) affiliate. In this role, Dae'Shawn will lead research, programs, and initiatives that strengthen Delaware’s economic climate and advance prosperity for all Delawareans. 

You’re a transplant! Where are you from? And what brought you to the First State?
I relocated from Las Vegas, NV to attend Temple University before falling in love with Delaware.

You have quite a diverse professional background. What most excites you about this position and how do you hope to make an impact through the Foundation’s work?
What excites me most is the opportunity to connect research, policy, and people in ways that move Delaware forward. The Foundation sits at a unique intersection of business, policy, and community, and that’s where I’ve always felt most energized. I see real potential to translate data into decisions that improve economic opportunity across the state. My goal is to ensure that our research not only measures competitiveness but also informs solutions that make Delaware a place where every community can thrive.
 
Do you have a favorite quote or personal mantra?
A quote from Fredrick Douglass “It is easier to build strong children than to repair broken men.”
 
​If you could have dinner with any three people (dead or alive), who would they be?
Lawrence Summers, Stacey Abrams, and Lerone Bennett Jr.
 
What do you enjoy doing in your free time?
Reading and collecting books or catching a live ball game.
 
What’s something people might be surprised to learn about you?
People are often surprised to learn that I was born in Salt Lake City, Utah, and spent time in foster care, including periods of housing instability. Those early experiences gave me an understanding of what it means to navigate systems that don’t always work for everyone. They taught me that opportunity isn’t just about access; it’s about design, accountability, and the courage to imagine something better. That perspective shapes how I approach my work today. Whether leading research or engaging across sectors, I view every project as an opportunity to build systems that expand possibilities—and to make Delaware a place where every person, regardless of their starting point, can see themselves in the state’s progress.  
 
What podcast or playlist is currently on repeat for you?
Philosophize This!, Hans Zimmer, or Nicholas Britell’s Succession soundtrack.

The Delaware State Chamber of Commerce is excited to welcome Tori Will as our new membership and administrative manager. In this role, Tori will support the State Chamber’s financial operations, bookkeeping, and member relations, bringing her energy and expertise to  enhance the experience of our members.

Where are you from?
I was born and raised in North Wilmington, Delaware. I graduated from Concord High School in 2017. 

What most excites you about this position and working at the Delaware State Chamber of Commerce?
I come from a family of lifelong Delawareans, so I’m really excited to be part of something that makes a difference in my state. I worked in the health care industry for several years, so this job feels like an exciting new direction for me, and I’m looking forward to learning and growing with the team.

Do you have a favorite quote or personal mantra?
"This too shall pass." I first heard it in an interview with Tom Hanks and it completely changed how I approach stressful situations.

​What do you love the most about Delaware?
The seasons! When I lived in Florida, I didn’t realize how much I took having all four seasons for granted. Spring is definitely my favorite. I also love how close we are to the beach and so many other major cities; I think that's something a lot of Delawareans don't realize is such an advantage. 

Do you have a favorite Delaware spot?
My favorite spot for food would be Mazzella’s off of Philadelphia Pike in Claymont. My sister worked there for many years, so it holds a special place in my heart. I highly recommend you try the penne alla vodka! 
 
What podcast or playlist is currently on repeat for you?
I’m a huge fan of Kylie Kelce so I love listening to her "Not Gonna Lie" podcast every week. She keeps it real and I respect that!

You can meet Tori next week at our Superstars in Business luncheon on November 5. Register > 

By Kelly Basile
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CNBC’s rankings for their 2025 Top States for Business came out today and Delaware moved up from 34th to 29th. The First State moved up in 6 categories—Economy, Cost of Doing Business, Business Friendliness, Technology and Innovation, Access to Capital, and Cost of Living—but fell in two categories, Infrastructure and Workforce. When it comes to Education and Quality of Life, Delaware saw no movement.

There are many forums that rank states and their competitiveness, all with areas weighted slightly differently and varying metrics factored into those scores. Therefore, it’s important to note that rankings from platforms like CNBC, CEO Magazine, Forbes, and others are nuanced. However, these rankings are what outsiders see. This, at times, can be their first impression of Delaware and what the state has to offer them as a resident, employee, or employer.

So, let’s dive into the data.

THE GOOD NEWS
When you pour into the methodology of how the category rankings are determined, CNBC weighted Economy most heavily this year, and Delaware moved up from 10th to 4th. Analysts noted that states’ economic development marketing pitches were focusing most on touting economic strengths amid fears of recession, which led to this category being the most important. Factors measured include fiscal conditions (GDP growth, job growth, state’s credit ratings, budgets’ spending, revenue and reserves, and pension obligations), residential real estate market health (inventory, price appreciation, affordability, property taxes, foreclosure activity, etc.), and corporate makeup (major corporation headquarters and new business formations).

Delaware’s economy ranked strong due to its AAA credit rating, a sizable Rainy Day Fund ($365.4 million), and the Budget Stabilization Fund, which currently stands at $469.2 million, but is increasingly at risk as spending pressures grow. Although GDP growth was flat in Q1 2025, the state’s job market remains relatively healthy with a 4.0% unemployment rate. Delaware’s historically strong corporate presence (it ranked 2nd in the country for business applications per capita in 2023) also contributed to its high ranking.

As inflation persists, the Cost of Living category did increase in value this year and Delaware performed well, placing in the top 10 at 9th. The analysis acknowledges that companies and workers are seeking states where prices are stable and daily living is affordable, especially in an inflationary economy. Delaware stood out with relatively moderate property taxes. However, housing affordability has become a growing concern. Over the past four years, average home prices in Delaware have surged by 56.2%—outpacing the national average increase of just over 50%. In May 2025, the median sold price hit a record high of $399,000. Despite this sharp rise, Delaware remains more affordable than many neighboring states.

Workforce continues to play a big role in scores and rankings, and while Delaware fell from 7th to 11th, the state still scored high (213 out of a possible 335 points) in this category. This is due to its strong pipeline of educated and skilled workers and ongoing investment in talent development, through initiatives like Executive Order #1 and the Delaware Pathways program. Elements factored into this score include the concentration of STEM workers, percentage of workers with college degrees (including associate degrees and industry-recognized certifications), net in-migration of educated and skilled workers, availability of training programs, right to work laws, and worker productivity based on economic output per job. As a small state of neighbors, Delaware is bringing together government, education, and the business community, and continues to support a workforce ecosystem that’s responsive to current and future employer needs. 

SOME CAUTIONARY TALES
Delaware fell from 23rd to 31st under the Infrastructure category, which was the second most weighted score contributing to overall rankings. Factors measured here include power access and reliability, water and wastewater utilities, broadband connectivity, the state’s overall transportation system, and the time it takes to commute to work. Another factor considered is access to markets through measuring the population living within 500 miles of each state. This includes land, office, and industrial space availability, the number of ‘shovel ready’ sites, and climate change sustainability. One of the largest growing sectors in Delaware is manufacturing, and with reshoring and the rebuilding of supply chains, the analysis rightly points out infrastructure’s important roles in supporting growth.

When it pertains to the Cost of Doing Business—one of our members’ top concerns as reported in our 2024 annual survey—the examination measured each state’s ability to ease business expenses (including incentives and tax breaks), tax competitiveness, wage and utility costs, and more. Here, Delaware received a D+ grade but rose from 44th to 41st. Much of this pertains to the state’s high corporate and individual income taxes (of course this is offset by attractive sales, property, and unemployment insurance taxes). The most recent legislative session saw a personal income tax bracket proposal that would have created three new top tier tax brackets. This came at a time when many Delawareans were already facing rising inflation and economic uncertainty, with higher property taxes also set to take effect.

Delaware moved up slightly in this year’s Business Friendliness ranking, from 46th to 43rd, but still landed in the bottom tier with a D+ grade, signaling there’s more work to be done. Delaware’s renowned corporate franchise remains an important asset, but the state faces challenges related to regulatory complexity and land use policies. Combined with ranking 50th for corporate taxes and 42nd for individual income tax by the Tax Foundation, Delaware must consider strategies around expediting permitting and approval processes, controlling wage and utility costs, supporting emerging industries, and protecting incentives and tax breaks designed to reduce business costs. 
 
BUILDING ON STRENGTH, FACING CHALLENGES TOGETHER
Many of these results are encouraging and reflect what Delaware’s business community has long known: our state is home to a strong economic foundation, a resilient workforce, and an environment where businesses and innovation can thrive.

While appearing as mere data points, taking a deeper look into these rankings reveals barriers to growth, potential factors that could keep businesses from choosing to relocate here, and challenges families and workers are facing across the state. Issues like workforce availability, education, housing affordability, infrastructure, and economic stability continue to weigh heavily on Delaware’s future trajectory. Our state’s competitive position will depend on our collective willingness to confront these realities head-on.

We at the Delaware State Chamber believe in the importance of a strong, vibrant private sector to create jobs and increase prosperity for all Delawareans. As bipartisan advocates, we work to support policies that promote economic growth and business success. By acting as a unified voice for business, we’re committed to leading the conversations that can address Delaware’s biggest challenges with practical, forward-thinking solutions.

Our improvement in this year’s CNBC rankings is a step forward, but it also serves as a reminder—and a tool—that we can do more.

A SUMMARY OF DELAWARE AND OUR NEIGHBOR’S RANKINGS

By Tyler Micik

The first leg of the 153rd Session of the General Assembly concluded in the early morning hours today. One could characterize this session as transitional. It began with a degree of uncertainty as new leadership took shape, the Governor settled into office, and a significant number of newly elected legislators began to navigate their roles amidst shifting local, national, and global dynamics. What started as a relatively slow legislative pace quickly picked up with the introduction of Senate Bill 21 (later substituted with SS 1 for SB 21), which updated Delaware’s General Corporation law with the intent to preserve the state’s competitive edge as the premier jurisdiction for business incorporation. The proposal stirred debate on a national level but was signed by the Governor one month later. Ultimately, more than 400 bills were introduced during the 2025 legislative session. The State Chamber prioritized 29 key bills by taking formal positions, gathering feedback, testifying at hearings, and proposing amendments to ensure the unified voice of Delaware’s business community was heard.
 
Some significant bills worth highlighting include personal income taxes (HS 2 for HB 13), pay transparency (HS 2 for HB 105), DNREC’s permitting fees package (HB 175), and a package of utility bills (SB 59, 60, and 61). Through thoughtful collaboration with a broad range of stakeholders and policymakers, the State Chamber defeated changes to Delaware’s personal income tax structure, secured amendments to the pay transparency bill to more accurately reflect the operational realities of small businesses across the state, and negotiated more measured fee increases within DNREC’s proposal—contingent upon Secretary Patterson’s commitment to enhancing permit processing times and fostering a culture shift within the department. These proposals are proof that when the business community and policymakers thoughtfully engage with each other, the end result is more balanced legislation.
 
The General Assembly also passed a $6.5 billion operating budget for FY26 (HB 225), along with a $37 million one-time supplemental budget (HB 226), which was signed by the Governor. This represents a 7% increase over the current FY25 operating budget and nearly 25% budget growth over the past three years. Some policymakers voiced concerns about the sustainability of this growth, warning that if revenues soften in the future—as the Office of Management & Budget has recently presented—the State may need to rely heavily on its Budget Stabilization Fund ($469.2 million) and Rainy Day Fund ($365.4 million), potentially exhausting them in the process.
 
Below is the full list of bills that the State Chamber engaged on. While some of these bills saw a great deal of collaboration and thoughtful consideration, others did not, and I’d be remiss not to touch on them. Proposals like SB 63 (general contractor liability) and SB 197 (public works contracts) are deeply concerning. SB 63 unfairly imposes financial and legal responsibility on Delaware contractors for the actions of their subcontractors—an approach that is impractical, potentially unconstitutional, and fundamentally misguided. We, and others, are urging the Governor to veto the bill. Similarly, SB 197 mandates the use of Project Labor Agreements (PLAs) on public school construction projects across the state. The State Chamber opposes the bill for two primary reasons: first, PLAs limit competition and exclude qualified local contractors—including small, minority-, and women-owned businesses—based on organizational membership; second, they often necessitate hiring out-of-state labor for specialized work not performed by union shops in Delaware, bypassing skilled local workers. This bill will place Delaware at a competitive disadvantage.
 
OVERVIEW OF KEY BILLS: