Regulatory Alerts2006-12-01
Added · Updated
Final: 1101 Election to Be Treated for Tax Purposes as a Subsidiary Corporation of a Delaware Chartered Banking Organization or Trust Company, National Bank Having its Principal Office in Delaware, or Out-of-State Bank That Operates a Resulting Branch in Delaware
The State Bank Commissioner adopts amended Regulations 1101, 1109, and 1113 and new Regulation 1114, effective December 11, 2006. Regulation 1101 establishes the requirements for corporations to elect treatment as a subsidiary corporation for tax purposes, requiring 80% ownership by a qualifying entity and employment of at least 200 persons in Delaware. Regulation 1109 provides instructions for calculating employment tax credits, allowing a $400 credit per new qualified employee in excess of 50, subject to a $15,000 per employee investment threshold and a 50% annual tax liability cap. Regulation 1113 permits subsidiary corporations of banking organizations to elect taxation under Chapter 19 of Title 30, excluding their income from the parent's taxable income.
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