Page Contents
Introduction
Buy Recycled
Technical Assistance
Financial Assistance
Eligibility and Benefits
Exclusions and Procedures
Introduction
The Delaware Economic Development Office (DEDO) and the Department of Natural Resources and Environmental Control (DNREC) have established a Green Industries Program to promote the use of recycled materials and reduce waste generation within Delaware's business and industrial community.
Creating markets for recycled materials is a critical element of any recycling program. Our Green Industries Program provides incentives to business and industry to use recycled materials in the manufacturing of new products or to collect and process such materials for use by other industries.
Source reduction is the reduction in the quantity and/or toxicity of waste generated within a manufacturing process through the use of innovative engineering solutions, product substitutions, and other measures. Source reduction results in fewer pollutants entering our air, land and water. Incentives for both source reduction and the use of recycled materials are included in this program.
The Green Industries Program targets specific businesses for receipt of financial and technical assistance to further the goals of Governor Castle's Executive Order #82 and Delaware's Pollution Prevention Program. Examples of the various types of companies which could qualify for the program include:
- Companies that significantly reduce waste generation in their manufacturing processes on a voluntary basis.
- Companies whose raw materials and/or components of production are composed of at least 25% recycled materials or materials removed from Delaware's solid waste stream.
- Companies engaged in the processing and/or recycling of materials removed from Delaware's solid waste stream for resale to manufacturers as a raw material or component of production.
- Companies engaged in the collection and distribution of recyclable materials which have been generated in Delaware.
Under the Green Industries Program, those companies meeting the requirements contained herein are eligible for technical assistance, special tax incentive and/or financing assistance. Businesses wishing to participate in the program must meet the eligibility requirements contained within at least one of four categories. Eligibility is determined by concurrence of the DNREC and DEDO. The type of financial assistance is dependent upon the business category. Technical assistance will be provided to businesses within any of the four categories.
Buy Recycled
If you already recycle, but don't buy recycled products you're only recycling half-way. By buying recycled products you fully close the recycling loop, and help create a market for the materials you recycle.
To help you learn more about buying recycled products, and Delaware's efforts to promote the purchase of recycled products throughout state government visit the Buy Recycled web site. Here you'll find information about Delaware's Recycled Product Procurement Law (SB 395), what products the law affects, and where to buy recycled products. Although the State already purchases several recycled products, the Recycled Product Procurement law challenges all agencies to significantly increase the number of products they purchase with recycled content.
Interested in finding out how your waste management practices impact global warming?Learn step-by-step how Delaware examined the impacts of various waste management practices including; source reduction, recycling, waste-to-energy, landfilling, landfill gas collection, and composting on greenhouse gas production.
Local Waste Reduction Efforts Can Turn Down the Heat On Global Warming? was produced by the Green Industries Office with funding from the U.S. EPA, and is intended as a resource for waste management professionals who are interested in quantifying the impacts of waste management practices on greenhouse gas production using EPA's Waste Reduction Model (WARM).
Eligible businesses may apply for assistance under the Delaware Green Industries Program using the Green Industries Program Application, which is available from the Delaware Economic Development Office, at (302) 672-6848, or on-line, below:
Green Industries Program Application
This is a "PDF" file, which presents the application in the same on-paper format in which it is printed. That way you can print it, fill it out, and send it in without having to wait for us to mail or fax it to you. It is viewable, and printable, using the free Adobe Acrobat Reader.
Technical Assistance
Under the Green Industries Program, the following technical assistance items are provided by DEDO and/or DNREC:
- Site Selection - Assisting the subject company in locating a suitable site and providing staff assistance in general consultation and in determining regulatory requirements.
- Employee education, recruitment and training - Providing and/or locating the tools necessary to develop competent employees.
- Priority Status for environmental permits - Giving priority status to regulatory reviews for projects which fall under the company's Green Industries Program category.
- Voluntary environmental compliance audit - For requesting businesses, DNREC will conduct regulatory compliance audits to assist businesses in understanding and complying with applicable laws. Emphasis will be placed on correcting deficiencies rather than enforcement actions.
- Marketing information - Assistance in locating markets for recycled materials.
- Technical information - Providing access to state and national case studies through the DEDO OnLine Data System and DNREC'S Pollution Prevention Program.
- Advocacy for other state and local approvals - DEDO and DNREC will actively support eligible businesses in seeking necessary approvals for operation.
The above efforts are designed to provide assistance to eligible industries, but are not to be considered a substitute for professional consultant services that may be required at any site. They express a commitment on the part of DEDO and DNREC to assist, in any way possible, the location or expansion of eligible businesses without compromising environmental protection standards.
Financial Assistance
For eligible businesses, the State of Delaware provides corporate income tax credits and/or gross receipts tax reductions for existing Delaware firms and those choosing Delaware as a location for new operations. The type of financial assistance is dependent upon the category under which assistance is requested.
In addition, the Delaware Economic Development Office also makes available all applicable financing programs for those companies requesting assistance under this program. Eligible businesses are offered comprehensive assistance in loan "packaging" by utilizing existing state and federal programs. The current financing program assists Delaware small businesses with 500 or fewer employees when 100% financing cannot be obtained through a bank. Under the Green Industries Program, eligible businesses will be exempt from the requirement that 100% financing could not be obtained from a bank. Financing can be provided for fixed assets as well as working capital.
Eligibility and Benefits
There are four categories of businesses that are eligible to participate in the program. Benefits vary depending on the type of business activity, the investment in capital and the creation of new jobs. The four categories are as follows:
CATEGORY A: Source Reduction
Companies will be eligible under Category A if they have voluntarily reduced the amount of waste they generate in their production processes by a minimum of:
- 20% for chemicals reported under the Toxics Release Inventory, or
- 50% for other wastes
To be eligible under this category, the waste reduction cannot be the result of any regulatory or legal requirements and must be documented in a source reduction plan. In addition, the reduction in waste must be a reduction in waste generation, not a reduction in waste disposal through recycling and/or waste utilization.
Existing Delaware manufacturers that voluntarily reduce the amount of process waste they are generating by the appropriate minimum specified above will receive for each 10% increment in waste reduction corporate income tax credits in the amount of $400. The credits are provided over a 5 year period.
For small business financing needs, the Green Industries Program provides direct loans from the State for up to 30% of a total loan package. In most cases, the interest rate for moneys loaned through this program are 70% of the prime interest rate.
CATEGORY B: Utilization of Recycled Materials as Inputs
Companies will be eligible under Category B if their production inputs are comprised of at least 25% (by weight) recycled materials or materials removed from Delaware's solid waste stream.Category B businesses that choose to establish new facilities in the State or expand their existing Delaware operations will receive the maximum allowable tax credit under the Green Industries Program. With a minimum investment of $200,000 and the creation of at least five new jobs, these companies are eligible to receive $650 for each $100,000 invested and $650 for each new employee for which at least $40,000 has been invested.
CATEGORY B businesses that choose to establish new facilities in the State or expand their existing Delaware operations, within a targeted census tract, are eligible for an expanded tax credit. With a minimum investment of $200,000 and the creation of at least five new jobs, these businesses are eligible to receive $900 for each $100,000 invested and $900 for each new job for which at least $40,000 has been invested.
For these same firms,the gross receipts tax will be eliminated on products produced using recycled inputs for the first five years of operation after which the tax will be reduced on a declining scale over a ten year period ranging from a 90% reduction in the first year to a 10% reduction in the tenth and final year
As in Category A above, for small business financing needs, DEDO will provide direct loans from the State for up to 30% of a total loan package.
CATEGORY C: Processing of Materials
Companies are eligible under Category C if they are engaged in the processing of materials removed from Delaware's solid waste stream for resale as an input to manufacturers. Processing involves changing the structure or form of the material(e.g., tire shredding, pelletizing plastic, etc.)The same tax credits, tax credit enhancements for targeted census tracts, gross receipts tax exemption and financing programs outlined under category B apply to Category C.
CATEGORY D: Collection and Distribution of Materials
Companies will be eligible under Category D if they collect and distribute recycled materials, and/or materials prevented from entering Delaware's solid waste stream for the purpose of recycling.The same tax credits, tax credit enhancements for targeted census tracts, gross receipts tax exemption and financing programs outlined under Category B apply to Category D.
Exclusions and Procedures
A company is not eligible for the Green Industries Program if, at any time during the 12 months prior to application, the company, or any of its principals, executive officers or directors, have been convicted of criminal offenses of an environmental nature, or subject to any DNREC administrative orders or convictions in Superior Court.
A company which has been accepted into the Green Industries Program will lose all benefits if, at any time after acceptance into the program, the company, or any of its principals, executive officers or directors is convicted of criminal offenses of an environmental nature, or subject to any DNREC administrative orders or convictions in Superior Court.
An individual firm may not claim credits for more than one category.
Green Industry tax credits are subject to all requirements as contained in 30 Del. C., Chapter 20.
To be eligible for benefits under the Green Industries Program, interested businesses must apply to DEDO and DNREC and may be required to furnish source reduction plans, market information and supplemental applications for financial assistance All information submitted will be subject to the Delaware Freedom of Information Act, which contains provisions for both public disclosure and confidentiality of information.
