DelawareSB 33153rd General Assembly (2024–2026)SenateWALLET

AN ACT TO AMEND TITLE 22, TITLE 29, AND TITLE 30 OF THE DELAWARE CODE RELATING TO THE DOWNTOWN DEVELOPMENT CORRIDORS AND DISTRICTS.

Sponsored By: Darius J. Brown (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 1 benefits, 0 costs, 4 mixed.

Grants for downtown building investments

Qualified investors in a designated corridor or district can get a state grant worth up to 20% of the qualifying building costs above the minimum investment. The work must be capital improvements listed in the law and follow the corridor or district plan. You must apply to DSHA, meet its verification rules, and spend at least the minimum amount that DSHA sets (it can change once a year). DSHA runs the program and can set caps and extra criteria, and grants are paid only if the General Assembly funds them that year. DSHA administers, enforces, and reports on the program.

Tax credit cap with downtown set asides

Total state historic tax credits are capped at $5 million each year. The law sets aside $100,000 for resident curators, $1.5 million for projects getting credits of $300,000 or less, and $1.5 million for projects in downtown districts or corridors (with $500,000 of that for those at $300,000 or less). On April 1, any unused set‑aside becomes available to any eligible project. If a project’s award is larger than the credit actually claimed, the extra is not reawarded. Unused curator set‑asides roll to the next year for other eligible people if there are not enough curator claims.

Binding local tax and permit breaks

When a city or county applies, it must offer local incentives that fit local needs. These can include lower local fees or taxes, faster permits, special zoning, or limited ordinance waivers. Once the area is designated, these incentives become binding and must follow the U.S. and Delaware Constitutions. Local governments must run a local development program and provide required reports. They can also set local eligibility rules for their incentives that differ from the state rules.

How areas get downtown designation

Corridors exist only inside cities with 30,000 or more people in the 2020 Census. No more than 15 districts can exist at once, and each city can have only one corridor. The Office opens applications when the Governor asks, a Cabinet Committee scores them with at least 50% weight on need and impact, and the Governor can approve now, approve in one year, or deny. A designation lasts 10 years and can be renewed twice for 5 years each if performance and need continue. In the first round, at least one corridor must be designated.

Reviews, changes, and planning support

A city or county can ask to change corridor or district lines or improve incentives, but a state committee must approve and any new incentive must be as good or better. Each designated area must send regular reports to the State Planning Office. The Office can start a formal review or seek to end a designation if duties are not met, with at least 2 years before review (unless incentives were not provided) and at least 1 year from review to termination, plus notice and a 3/5 committee vote. Rules may allow existing incentives to continue for a reasonable time after termination. The Office can also give planning grants to local governments if the work follows the State’s Strategies for Policies and Spending.

Sponsors & Cosponsors

Sponsor

Darius J. Brown
Democratic • Senate

Cosponsors

Stephanie T. Bolden
Democratic • House
Edward S. Osienski
Democratic • House

Roll Call Votes

All Roll Calls

Yes: 61 • No: 0

House vote • 6/12/2025

Passed (SM required)

Yes: 40 • No: 0

Senate vote • 5/14/2025