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

4 provisions identified: 2 benefits, 0 costs, 2 mixed.

Downtown property investors gain improvement grants

Qualified owners and tenants in designated corridors or districts can get grants for construction, expansion, or rehabilitation. Grants cover up to 20% of qualifying investment above the minimum set by the Delaware State Housing Authority. Residential, commercial, industrial, and mixed-use improvements qualify when treated as capital costs and placed in service during the calendar year. Work must follow the area's plan, and investors must apply for and receive the authority's allocation approval. A tenant's qualifying investment is limited to the share covered by its valid lease. Grants depend on annual state funding, and the authority can set annual limits for individual investors. Minimum thresholds can vary by project and change no more than once a year; the fiscal 2015 residential or mixed-use baseline was $25,000.

Corridor projects gain reserved tax credits

Eligible corridor projects now share the annual $1.5 million tax-credit pool previously reserved for district projects. Within that pool, $500,000 is reserved for corridor or district projects receiving credits of $300,000 or less. Unused balances in the reserved pools become available to any eligible project on April 1. These amounts are shared program reservations, not guaranteed credits for each investor.

Downtown communities gain redevelopment options with limits

The law adds Downtown Development Corridors in municipalities with at least 30,000 residents in the 2020 Census. Districts can cover municipal or unincorporated areas. The Governor must request applications, which must describe the area, explain its needs, and include plans and local incentives. Community need and impact count for at least 50% of the review. The first corridor application round must produce at least one designation. Each municipality can have one corridor, with no more than 15 corridors and districts statewide. Designations last 10 years; the Governor can approve two five-year renewals after committee recommendations based on performance and continued need. The law removes both the first-three-districts requirement of one per county and the initial-round limit of one to three districts.

Downtown incentives bind towns to promises

Towns must provide the local incentives promised in approved corridor applications, which can include lower taxes or fees. Towns can set eligibility rules that differ from state incentive rules, but incentives must follow state and federal constitutions. Towns must keep their corridor programs active and submit required reports and evaluations. Towns or counties can request boundary or incentive changes, but the state planning committee must approve them. Replacement incentives must be equal to or better than the incentives they replace.

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