HB 186 — AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO BUSINESS TAX CREDITS AND DEDUCTIONS FOR ELECTRICITY PRODUCTION.

Summary

The purpose of this bill is to incentivize the construction and operation of a limited number of high-efficiency Combined-Cycle Gas Turbine (CCGT) electrical generation facilities, with an output of between 100 MW and 500 MW, by creating an Electricity Production Tax Credit (EPTC) and bonus credits. These credits would offset state corporate tax liability while facilitating the increased availability of clean, cost-effective, high-efficiency, and energy production. CCGT power plants are proven technology that can provide significant dispatchable power production to meet Delaware’s growing need for dependable energy, while promoting grid stability that will enable the integration of renewable energy generation. Having the CCGT facilities built within Delaware will improve the energy security of our citizens while reducing power transmission charges and energy loss. The value of the Electricity Production Tax Credit (EPTC) can be increased via bonus credits if the CCGT power-generating facility is built on a brownfield or the current or former site of a power plant. Additional bonus credits can be earned if the plant’s operation exceeds certain high-efficiency thresholds and if it incorporates carbon-capture technology into the design. The value of the credits realized by the facility operator would result from the quantity of electricity delivered. Most CCGT plants operate at a capacity factor of 50% to 85%. A 500 MW power plant, operating within these margins, would be expected to produce somewhere between 2.2 million and 3.7 million MWh per year. At a maximum annual 65% production capacity, a 500 MW plant could serve the needs of approximately 210,000 homes. The total value of the credits for each eligible facility receiving the tax credits established under this bill is limited to $15 million annually. The number of facilities eligible for the tax credits established under this bill will be no more than three statewide.

Bill Text

• Bill Text View text Current pdf

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

This bill establishes a new Electricity Production Tax Credit for high-efficiency Combined-Cycle Gas Turbine facilities in Delaware, with criteria for eligibility and specific bonus credits.

• Chapter 20, Title 30

  Subchapter XI. Electricity Production Tax Credit § 2100. Definitions ... § 2101. Qualifications for Eligibility. ... § 2102. Electricity Production Tax Credit (EPTC), Structure & Corporate Tax Offset ...

  This creates a new subchapter specifically for the Electricity Production Tax Credit, defining terms and eligibility.

• § 2100

  (1) “Combined-Cycle Gas Turbine” (CCGT) means a generation facility that incorporates gas turbines and steam turbines operating in a combined unit, using waste heat from the gas turbines to drive one or more steam turbines to produce electricity.

  This defines 'Combined-Cycle Gas Turbine' for the purposes of the tax credit.

• § 2100

  (2) “Electricity Production Tax Credit” (EPTC) means a per megawatt-hour (MWh) refundable and transferable state tax credit based on the production of electricity to be used against state corporate tax liability.

  This defines 'Electricity Production Tax Credit' for the purposes of the new subchapter.

• § 2101

  (1) The credit applies to up to three Combined-Cycle Gas Turbine (CCGT) generation facilities, as defined in this subchapter, operating within the State of Delaware.

  This specifies the limitation on the number of CCGT facilities that can qualify for the tax credit.

• § 2101

  (4) Must enter service between January 1, 2027, and January 1, 2038.

  This establishes a time frame for when eligible facilities must begin operation.

• § 2102

  (a) A base Electricity Production Tax Credit of $4 per megawatt-hour (MWh) shall be credited against state corporate tax liability.

  This sets the base amount of the tax credit available per MWh of electricity produced.

• § 2102

  (b) A bonus Electricity Production Tax Credit of $1 per MWh shall apply for facilities located on an industrial brownfield site or on the site of an existing power plant or the site of a previous power plant that has ceased operations within 10 years of the start of construction of the new CCGT facility.

  This introduces a bonus credit for facilities built on certain previously used sites.

• § 2102

  (d) A bonus Electricity Production Tax Credit of $1 per MWh shall apply to CCGT facilities integrating carbon capture technology.

  This provides an additional incentive for using carbon capture technology.

• § 2102

  (g) The total value of the Production Tax Credit and bonus credits realized by the operator of a CCGT generation facility, including the sale and transfer of such credits, shall not exceed $15 million in any given tax year.

  This sets a cap on the total tax credits that can be claimed by a facility each year.

Action History

1. March 18, 2026

   Not Worked in Committee

2. March 11, 2026

   Not Worked in Committee

3. June 06, 2025

   Amendment HA 1 to HB 186 - Introduced and Placed With Bill

4. June 05, 2025

   Introduced and Assigned to Revenue & Finance Committee in House

Sponsors

• Stell Parker Selby · Primary
• David L. Wilson · Primary
• Bryant L. Richardson · Primary
• Dave G. Lawson · Primary
• Franklin D. Cooke · Primary
• Lyndon D. Yearick · Primary
• Jesse R. Vanderwende · Primary
• Bryan Townsend · Primary
• Michael F. Smith · Primary
• Bryan W. Shupe · Primary
• Daniel B. Short · Primary
• Charles S Postles Jr. · Primary
• Shannon Morris · Primary
• Valerie Jones Giltner · Primary
• Laura V. Sturgeon · Primary
• Ronald E. Gray · Primary
• Timothy D. Dukes · Primary
• Richard G. Collins · Primary
• John "Jack" Walsh · Primary
• Brian Pettyjohn · Primary
• Edward S. Osienski · Primary
• Kevin S Hensley · Primary

Subjects