Delaware Creates Its First Dedicated Film and Media Production Tax Credit
by Will Ramirez, on Sep 14, 2026, 1:00:00 PM
For years, Delaware was one of the few states without a dedicated film or media production incentive, watching productions and the spending that comes with them flow to neighboring states. In the summer of 2026, that changed.
For producers, studios, and the growing esports and video-game sectors, Delaware’s new credit adds another option in the Mid-Atlantic — and for companies weighing where to base a project, it is worth understanding what the program offers and how it is structured.
Recent Program Activity: What Changed
On July 1, 2026, Governor Matt Meyer signed House Bill 364 into law as Chapter 333 of the Laws of Delaware, creating the Delaware Entertainment Production Tax Credit — the state’s first dedicated film and media production tax credit. The bill passed both chambers without a dissenting vote, reflecting broad support for building a creative-economy sector in the state.
The new law establishes a transferable income-tax credit for qualified entertainment production activity in Delaware and directs the Division of Small Business to administer it. The credit is nonrefundable, but a production company that does not have enough Delaware tax liability to use it may carry the credit forward for up to five years or, with preapproval, transfer it — which is what makes this kind of incentive workable for out-of-state producers.
Program Overview: How the Credit Works
The credit equals 30% of a qualified company’s qualified Delaware expenditures — eligible in-state payroll, goods, and services — for companies that incur more than $100,000 in qualified expenditures over a 12-month period. The statute excludes categories such as out-of-state services, marketing, and story rights. Eligible productions span film, television, esports, and video-game projects, reflecting a deliberately broad definition of the modern entertainment industry.
A qualified company is entitled to the credit subject to preliminary approval and final certification, and awards are capped at $10 million per fiscal year. The Division of Small Business administers that cap under statutory priorities favoring productions that hire Delaware residents, use Delaware businesses, commit to repeat production, and establish a permanent in-state presence; qualifying productions must also provide Delaware internship opportunities. Independent verification, reporting, and interagency oversight are built into the statute, and applications may not be accepted after June 30, 2031.
Why It Matters
Film and media incentives are a competitive location tool, and Delaware’s entry gives producers a new Mid-Atlantic option alongside larger, more established programs in neighboring states. The 30% credit on qualified expenditures is competitive on its face, and the inclusion of esports and video-game production reflects where a growing share of media investment is heading.
At the same time, the $10 million annual cap means the program is modest in scale and competitive to access, and the statutory priorities favor productions with a genuine, lasting Delaware footprint.
What Companies Should Do
Companies considering a Delaware production should model the 30% credit against total project economics and against competing jurisdictions, focusing on which expenditures qualify and planning around the eligibility threshold and the priorities favoring Delaware hiring, vendors, and permanent presence. Because the law directs the Division to establish audit and transfer procedures by January 1, 2027, companies should confirm current application availability and requirements before relying on the program.
Producers should also weigh the credit’s transferability as part of their financing plan, since monetizing a nonrefundable credit through a preapproved transfer — or carrying it forward — may be central to realizing its value.
How SSG Can Help
Site Selection Group helps companies evaluate location decisions and the state and local incentives that support them, including industry-specific programs like film and media production credits. We model incentive value against total project economics, compare programs across competing jurisdictions, and help clients navigate eligibility requirements, program caps, and application processes.
Program details verified against primary sources as of August 31, 2026. Program rules, application status, and administrative guidance can change; confirm current details with the administering agency before acting. This article is provided for general information and does not constitute tax or legal advice.
