More financial service companies could expand into Delaware thanks to a tax incentive bill signed into law by Gov. Ruth Ann Minner on July 22. Senate Bill 213 creates new tax rules for asset management corporations, letting the companies choose to pay taxes based on gross receipts instead of property, wages and sales. Asset management corporations are defined in the bill as companies that receive at least 90 percent of gross receipts from advising clients about intangible assets. Defining asset management corporations and freeing them from an onerous tax system will help attract more corporations to Delaware, said Judy McKinney-Cherry, director of the Delaware Economic Development Office. “Senate Bill 213, the asset management corporations’ legislation, is a testament to Delaware’s agility, Delaware’s spirit of cooperation and ability to modernize our laws to remain competitive,” said McKinney-Cherry, during the bill signing ceremony at the office of BlackRock, Inc., in the Bellevue Corporate Center. Financial services are a vital part of the state’s economy, with dozens of financial firms relocating or expanding to Delaware since the Financial Center Development Act became law in 1981, she said. More than 30,000 jobs have been created because of that act and Senate Bill 213 promises to create hundreds more, said McKinney-Cherry. Because of the new tax rules, BlackRock, Inc., a nationwide investment management firm, plans to hire ...
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More financial service companies could expand into Delaware thanks to a tax incentive bill signed into law by Gov. Ruth Ann Minner on July 22. Senate Bill 213 creates new tax rules for asset management corporations, letting the companies choose to pay taxes based on gross receipts instead of property, wages and sales. Asset management corporations are defined in the bill as companies that receive at least 90 percent of gross receipts from advising clients about intangible assets. Defining asset management corporations and freeing them from an onerous tax system will help attract more corporations to Delaware, said Judy McKinney-Cherry, director of the Delaware Economic Development Office. “Senate Bill 213, the asset management corporations’ legislation, is a testament to Delaware’s agility, Delaware’s spirit of cooperation and ability to modernize our laws to remain competitive,” said McKinney-Cherry, during the bill signing ceremony at the office of BlackRock, Inc., in the Bellevue Corporate Center. Financial services are a vital part of the state’s economy, with dozens of financial firms relocating or expanding to Delaware since the Financial Center Development Act became law in 1981, she said. More than 30,000 jobs have been created because of that act and Senate Bill 213 promises to create hundreds more, said McKinney-Cherry. Because of the new tax rules, BlackRock, Inc., a nationwide investment management firm, plans to hire ...