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STATE OF DELAWARE
2022 Corporate Income Tax

Instructions

INSTRUCTION HIGHLIGHTS
CALENDAR YEAR 2022 AND FISCAL YEAR ENDING 2023 TAX YEAR

Title 30 of the Delaware Code authorizes a number of different tax credits to be applied against Delaware income tax.
Some tax credits are refundable, and others are not. All tax credits require an application to be submitted and approved
prior to being claimed on a Corporation Income Tax Return. See Form 700 and instructions for details.
Senate Bill 26 of the 149th General Assembly created a Business Tax Credit of $100.00 per unit for any business
purchasing and placing into service an automatic external defibrillator at a business location in the State of Delaware. The
one-time credit is available for the tax year in which the defibrillator is placed in service.
Corporations who are incorporated in Delaware and whose activities are limited to maintaining a statutory corporate office
and not conducting business within Delaware are exempt from filing the Delaware corporate income tax return under
Section 1902(b)(6) of Title 30 of the Delaware Code. While a corporation may be exempt from filing an income tax return
under Section 1902(b)(6), an annual franchise tax is imposed upon all corporations for the privilege of being incorporated
in Delaware unless specifically exempted by law. The franchise tax is administered by the Secretary of State. Companies
may incorporate under the Delaware General Corporation Law by filing the proper documents with the Secretary of State,
Division of Corporations, P.O. Box 898, Dover, Delaware 19903. General information can be obtained by calling (302) 739-
3073, or by visiting their website, corp.delaware.gov.
Step-by-step instructions for completing the Delaware corporate income tax return are provided in this booklet. The Division
of Revenue is committed to providing quality services to all businesses. To assist, the Division’s Office of Business Taxes
has created a home page within the website of the Delaware Division of Revenue at revenue.delaware.gov. This site
contains information for registering your business, tax tips to guide you in filing various business tax returns and the ability
to electronically contact a representative of the Office of Business Taxes with your tax questions. Effective January 1, 2020,
the apportionment calculation for Delaware will be based entirely on the sales or gross receipts factor on the Delaware
corporate income tax return. If your current Delaware business license expires on December 31, 2022, you can renew
your business license for 2023 and pay the license fee using a credit card at onestop.delaware.gov. The business will be
able to print a temporary license directly from the website and subsequently will be mailed a permanent license. In addition,
any business renewing a license online may also elect a one or a three-year business license.

OFFICE LOCATIONS
TOLL-FREE TELEPHONE NUMBER - DELAWARE ONLY 1-(800) 292-7826

DOVER WILMINGTON GEORGETOWN
Division of Revenue Division of Revenue Division of Revenue
Thomas Collins Building Carvel State Office Building 20653 DuPont Blvd, Suite 2
540 S. DuPont Highway, Suite 2 820 N. French Street Georgetown, DE 19947
Dover, DE 19901 Wilmington, DE 19801 Telephone: (302) 856 - 5358
Telephone: (302) 744 -1085 Telephone: (302) 577 - 8205 Fax: (302) 856 - 5697
Fax: (302) 744 -1095 Fax: (302) 577 - 8662

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                          CORPORATION INCOME TAX RETURN INSTRUCTIONS 
                                                                GENERAL INSTRUCTIONS 
                                                                                       An extension beyond the automatic six-month period must be requested 
CORPORATIONS REQUIRED TO FILE RETURNS                                               by letter on or before the extended due date of the return. A copy of the Division 
Every domestic and foreign corporation doing business in Delaware, not              of Revenue Approval Letter must be attached to the final return when filed. 
specifically exempt under the provisions of Section 1902(b), Title 30, Delaware 
Code, is required to file a corporation income tax return regardless of the         PENALTIES AND INTEREST 
amount, if any, of its gross income or its taxable income.                             Returns filed late  are subject to a penalty of  5% per  month, up to  a 
Corporations whose activities in Delaware are limited to the maintenance            maximum of 50% of the tax liability due, plus interest of I/2% per month from 
and management of their intangible investments may be exempt under Section          the original due date until paid. In addition to the above penalties and interest, 
1902(b)(8). Corporations may obtain a specific ruling from the Division of          an additional  penalty of  I% per month  (not to exceed 25%) is imposed for 
Revenue by filing an Application for Exemption, Form 1902AP, describing their       failure to pay (in whole or in part) the tax liability shown to be due on a timely 
operations and stating the grounds for the exemption under Section                  filed return. 
1902(b)(8). 
Section 1904(1), Delaware Code, requires that corporations exempt under             TENTATIVE TAX FILING REQUIREMENTS 
Section 1902(b)(8) file an Annual Information Return  (Division or Revenue             Every corporation is required to declare the amount of its estimated tax 
Form 1902(b)) reporting sources of income and services provided within and          liability and prepay the estimated tax in four installments. The declaration and 
without Delaware.                                                                   first remittance, equal to 50% of the corporation’s estimated tax liability, are 
Consolidated corporate income tax returns are not permitted under                   due on or before the fifteenth day of the fourth month of the taxable year. The 
Delaware Law. Each corporation  that  is a member of a consolidated                 declaration (Form T-1) is due even if the estimated tax liability is zero and no 
group must file a separate return (1120 Pro forma) reporting income and             remittance is required. The remaining coupons -- T-2, T-3, and T-4 -- are not 
deductions as if a separate Federal income tax return was filed.                    required to be filed if the estimated tax liability is zero for the remainder of the 
The State of Delaware has not adopted by statute or by regulation, the              taxable year. If the estimated tax liability is greater than zero during any of the 
provisions of the Uniform Division of Income Tax Purposes Act nor is the State      remaining three quarters of the taxable year, quarterly tentative tax payments 
a compact member of the Multistate Tax Commission. The State of Delaware            are due according to the following schedule: 20% on the 15th day of the 6th 
does not recognize or approve using Combined Reporting, Unitary or Waters           month of the taxable year; 20% on the 15th day of the 9th month of the taxable 
Edge methods of filing a Delaware corporate income tax return.                      year and 10% on the 15th day of the 12th month of the taxable year. 
The State of Delaware has issued  regulations (Technical Information                   Declarations of tentative tax and payments must be made by filing Form 
Memorandum 98-1) regarding the Federal “check the box” classification of            1100-T, Tentative Tax Return. Failure to make a declaration or file and pay the 
Limited Liability Companies (LLCs), where such LLCs conduct business within         required tentative tax payments will result in a penalty. A penalty of 1.5% per 
Delaware.                                                                           month is imposed on any underpayment or late payment of tentative taxes 
An LLC that has elected to be treated as a corporation will file a Delaware         from the due date of the tentative payment to the date the tax was paid. The 
corporate income tax return. The corporate attributes of the LLC do not flow        penalty will not be imposed if total tentative taxes timely paid equal or exceed 
through to the individual member(s). Delaware recognizes the existence of the       80% of the current year’s tax liability or equal or exceed 100% of the tax liability 
LLC as a separate legal entity which does not create nexus for the individual       of the first preceding taxable year. 
LLC member(s) when the LLC has elected to be taxed as a corporation.                   Corporations that do not  qualify as a small corporation must make 
An LLC  that  does not  make a  Federal election to be treated as  a                estimated payments that equal to 80% of the current year’s tax liability. 
corporation and has a single corporate member will not be recognized as a 
corporation for Delaware income tax purposes. The LLC will be considered   a        Small Corporation Rule: 
division of the single corporate member. The single corporate member will be           The term “small corporation” means any corporation, including, without 
required to file  a Delaware corporate income tax return.  The corporate            limitation, an S corporation subject to § 1158 of this title, if such corporation (or 
apportionment percentage will reflect the operation of the entire corporation       any predecessor corporation)  had  aggregate gross receipts from sales  of 
and the property, wage and sales factors of the LLC will be included with the       tangible personal property and gross income from other sources both within 
factors of the single corporate member.                                             and without the State for purposes of computing the ratio described in schedule 
                                                                                    3-D of this return that do not exceed the applicable threshold of $20,000,000
PERIOD COVERED BY RETURN                                                            (as adjusted pursuant to 30 Del. C. § 515) for any 2 of the 3 taxable years
The income tax year of a corporation is the same as the taxable year the            immediately preceding the taxable year for which estimated tax is being
corporation reports for purposes of the Federal income tax. Accordingly, this       computed.
return is to be filed for the calendar year 2022 or fiscal year beginning in 2022      For small corporations, 25% of the estimated tax liability for the current 
and ending in 2023.                                                                 taxable year shall be paid with the tentative return filed on the fifteenth day of 
Short period returns are required when there is a change of the accounting          the fourth month of the current taxable year, and the balance of the estimated 
period or where the taxpayer is not in existence for the entire year. Short-period  tax shall be paid in 3 equal installments of 25% on each of the fifteenth day of 
returns are also required when there is a change of ownership as in the case        the sixth month of the current taxable year; the fifteenth day of the ninth month 
of a subsidiary required to file a consolidated Federal income tax return with      of the current taxable year; and the fifteenth day of the twelfth month of the 
its parent. Chapter 19 (Corporation Income Tax) of Title 30 of the Delaware         current taxable year. 
Code does not contain  a specific provision for the filing of a short  period          An  Electronic Funds  Transfer (EFT) program has  been established 
corporate final income tax return. Section 1901(12) provides that the “income       enabling  a corporation to remit tentative  tax  payments electronically. This 
year” of a corporate taxpayer shall be the taxable year for which a taxpayer        program is available to all corporations on a voluntary basis. 
computes its net income for purposes of the Federal income tax. Section 1903           To participate in the EFT  program, you must complete the EFT               
provides that the entire net income of a corporation is the amount of its Federal   Authorization Agreement form. This form and its instructions are available at 
taxable income with specific modifications. As a result, if a short period Federal  https://revenue.delaware.gov/services/BusEFT/BusEft.shtml      under       the
return is due, a short period Delaware return is also due for the same tax period.  “Enrollment” tab. 
Short period returns resulting from acquisitions or mergers are  due on the 
fifteenth day of the fourth month after the end of the taxable pre-acquisition      EXEMPT CORPORATIONS 
and post-acquisition periods.                                                       The following corporations are exempt from filing a Delaware corporate 
                                                                                    income tax return: 
WHEN TO FILE AND EXTENSIONS 
File Form 1100 on or before the fifteenth day of the fourth month following         1. Fraternal beneficiary societies, orders, or associations.
the close of the taxable year. A request for an automatic extension of six months   2. Cemetery corporations and corporations created for religious, charitable,
                                                                                       scientific or educational purposes.
to the Internal Revenue Service will automatically extend by six months the         3. Business leagues, chambers of commerce, fire companies, merchants’
filing date for the Delaware return. If an automatic Federal extension has been        associations or boards of trade not organized for profit.
granted, a copy of the extension must be attached to the final return when filed.   4. Civic leagues or organizations not organized for profit but operated
An extension of time with payment for filing the Delaware  corporate                   exclusively for the promotion of social welfare.
income tax return is made by filing Form 1100 T-EXT on or before the due date       5. Clubs organized and operated exclusively for pleasure, recreation, and
of the original return. Please note that a timely filed extension extends the          other nonprofitable purposes.
due date for filing a  final  return  but  does  not  extend  the  due date for     6. Corporations maintaining a statutory corporate office in Delaware but not
payment of tax. Payment of the anticipated liability must be made with the             doing business within Delaware.
extension request. Section 511 of Title 30 of the Delaware Code provides that       7. Insurance companies paying taxes upon gross premiums to the Insurance
                                                                                       Commissioner.
the Director may grant an extension of time for filing any return and may require   8. Corporations whose activities within Delaware are confined to the
a bond not exceeding twice the amount of the tax. 
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maintenance and management of their intangible investments and the corrections or adjustments must be reported to the Division of Revenue within
collection and distribution of the income from such investments or from 90 days after the final determination by the Internal Revenue Service is made
tangible property physically located outside of Delaware. along with an amended 1120X pro forma return. Form 1100X is available from
9. S Corporations for taxable years beginning on or after January 1, 1992, the Division of Revenue website (revenue.delaware.gov).
10. A corporation qualifying as a domestic international sales corporation ATTACH COPY OF FEDERAL RETURN
(DISC) under the provisions of subchapter N of Chapter 1 of the Internal You must attach a copy of your Federal return (form 1120) for the income year,
Revenue Code. including all schedules and exhibits, when filing your Delaware return. If a
11. An entity that is a real estate mortgage investment conduit as defined in corporation is a member of an affiliated group for Federal income tax
Section 860D of the Internal Revenue Code of 1986. purposes, the corporation must furnish a pro forma Form 1120.
12. An entity registered as an investment company under the Investment
Company Act of 1940. ELECTRONIC FILING OF FORM 1099 INFORMATION
13. An entity that is a real estate investment trust as defined in Section Any corporation required to report Form 1099-MISC or 1099-R information
856 of the Internal Revenue Code of 1986. to the Internal Revenue Service on electronic media must also report to the
14. An entity that is a homeowner’s association as defined in Section 528 of Delaware Division of Revenue on electronic media, The duty to report 1099-
the Internal Revenue Code or successor provision. MlSC information to the Division or Revenue applies in the case of Forms
NOTICE OF FEDERAL TAX ADJUSTMENT 1099-MISC issued to persons resident in Delaware or to nonresidents of
If a taxpayer files an amended Federal income tax return, the corporation Delaware for work performed within Delaware. The 1099-MISC and 1099-R
is required within 90 days to file an amended State of Delaware corporation forms are required to be reported to Delaware in the case of any person issued
income tax return, Form 1100X, together with a copy of the amended Federal a Form 1099-R on which Delaware taxes are reported as withheld. Even
return (1120X Pro forma). If the net income reported by the taxpayer to the though Delaware participates in the Combined Federal/State Filing Program,
Internal Revenue Service for Federal income tax purposes is changed or the 1099-MISC and 1099-R forms are required to be filed directly with
corrected by the Internal Revenue Service, or the tax computed on the return Delaware. All others, including 1099-DIV and 1099-INT need not be filed.
is redetermined by the Internal Revenue Service, notice of such changes, Please see Technical Information Memorandum 2006-3 for the complete
reporting requirements.

SPECIFIC INSTRUCTIONS FOR FORM 1100
IMPORTANT
To ensure the timely and proper processing of your corporate income tax return, ALL lines and schedules must be completed. Specific line items,
supported by separate attached schedules, must be entered on the appropriate line of this return. Failure to complete all lines and schedules will
delay the processing of your return.
CALENDAR OR FISCAL YEAR OPERATION Also, include this amount on Form 1100, Schedule 4-A, Line 1. Interest income
The 2022 Form 1100 is used to report your Delaware corporate income tax received from a foreign source on which a foreign tax was not actually paid is
for calendar year 2022 or fiscal year beginning in 2022 and ending in 2023. If classified as “Other Interest Income” and included in Schedule I, Column 5.
the corporation conducts business on a fiscal year basis, insert the beginning Enter in Schedule 1, Column 2, the total amount of interest income received
and ending dates of the fiscal year in a MM/DD/YY format. from bonds or securities of the United States or U. S. Instrumentalities, less
applicable expenses. Also, enter this amount on Form 1100, Schedule 4-A,
EMPLOYER IDENTIFICATION NUMBER, NAME AND ADDRESS Line 2. Interest received on obligations for which the United States is not the
Enter the employer identification number complete name, corporate primary obliger or which are not guaranteed by the full faith and credit of the
headquarters address and Delaware address (if different from the corporate United States are not exempt from tax.
headquarters address) of the corporation. Employer identification numbers Enter in Schedule 1, Column 3, the total amount of interest income (include
are issued by the Internal Revenue service by filing Federal Form SS-4. discount) received on inter-corporate obligations representing advances, loans
or similar contractual transactions that meet the following requirements: (I) The
DATE AND STATE OF INCORPORATION AND NATURE OF BUSINESS debtor and creditor corporations are subject to taxation under Delaware Law,
Enter the date in MM/YY format and the state in which the corporation is and (2) The debtor corporation does not claim a deduction for such interest
incorporated. Enter a short phrase to describe the nature of business payments in determining its entire net income for Delaware corporation income
conducted by the corporation. tax purposes. Also, enter this amount on Form 1100, Schedule 4-A, Line 3.
Enter in Schedule 1, Column 4, the total amount of interest income received
CHECK THE APPLICABLE BOX from obligations issued by any state or political subdivisions, other than the
Check the Small Corporation box if the corporation qualifies as a small State of Delaware or its political subdivisions. Also, include this amount on
corporation. Form 1100, Schedule 4-B, Line 3 and Form 1100, Page 2, Schedule 2, Column
The term “small corporation” means any corporation, including, without 3, Line 5. The interest must be allocated to the state where the transaction took
limitation, an S corporation subject to § 1158 of this title, if such corporation (or place that resulted in creation of the obligation.
any predecessor corporation) had aggregate gross receipts from sales of Enter in Schedule 1, Column 5, the total amount of all other interest income
tangible personal property and gross income from other sources both within received and not included in any other column of Schedule 1. Also, include this
and without the State for purposes of computing the ratio described in schedule amount on Form 1100, Page 2, Schedule 2, Column 3, Line 5. The interest
3-D of this return that do not exceed the applicable threshold of $20,000,000 must be allocated to the state where the transaction took place that resulted in
(as adjusted pursuant to 30 Del. C. § 515) for any 2 of the 3 taxable years creation of the obligation.
immediately preceding the taxable year for which estimated tax is being
computed. LINE 1 - FEDERAL TAXABLE INCOME
Check the ESOP box if the corporation has received a determination on Enter on Line 1, the amount of your Federal taxable income without
whether a plan, initially or as a result of a plan amendment, meets the modifications. The State of Delaware does not recognize an affiliated group of
requirements of section IRC 4975(e)(7). corporations as a taxable entity. Consolidated and combined returns are not
Check the Initial Return box if this is the first time the corporation is filing a permitted. The starting point for Delaware corporate income taxes is the
Delaware corporate income tax return. Check the change of address box if the Federal taxable income without modifications. Each separate
address of the corporation has changed from the previous year’s filing. Check corporation must attach a separate Federal corporate income tax return
the Extension Attached box if the corporation has obtained an approved Federal (1120 Pro forma).
or Delaware extension of time to file a Delaware’s corporate income tax return.
LINE 2 - SUBTRACTIONS FROM FEDERAL TAXABLE INCOME
OUT OF BUSINESS Enter on Schedule 4-A, Line 1, the amount of dividends received from foreign
Enter the exact date in MM/DD/YY format when the corporation ceased sources to the extent that a foreign tax was actually paid or accrued, or the
business operations. Only enter a date if the corporation went out of business dividends were included in the dividend gross-up for Federal income tax
during, or on the last day of the corporation’s tax year reported on this return. purposes. Dividends not eligible for the deduction on schedule 4-A, Line 1 are
to be apportioned to the state of corporate domicile. Also enter on schedule 4-
SCHEDULE 1 - INTEREST INCOME A, Line 1 the amount of interest (from Schedule 1, Column 1) and royalties
Enter in Schedule 1, Column 1, the total amount of interest income received received from foreign sources to the extent that a foreign tax was actually paid
from a foreign source to the extent that a foreign tax was actually paid or or accrued. Interest and royalty income received from a foreign source on
accrued on the foreign interest income. which a foreign tax was not actually paid are required to be allocated within or

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without Delaware in Schedule 2 of the Delaware corporate income tax return.         LINE 3 - SUBTOTAL 
Please see Line 6 for specific allocation rules.                                    Subtract Line 2 from Line 1 and enter result on Line 3. 
Federal Form 1118 must be attached to substantiate the deduction claimed on         LINE 4 - ADDITIONS TO FEDERAL TAXABLE INCOME 
Schedule 4-A, Line 1. Dividends from Domestic  International Sales                  Enter on Schedule 4-B, Line 1, the amount of all net income taxes computed on 
Corporations, foreign capital gains, rents and miscellaneous income are not         the basis of, or in lieu of, net income or net profit that are imposed by any state 
considered exempt income for purposes of this exclusion. These items  of            or political subdivision of any state and were deducted in computing Federal 
income are subject to the rules of allocation or apportionment. Please refer to     taxable income. 
the specific instructions for apportionable and non-apportionable income. 
                                                                                    Enter on Schedule 4-B, Line 2, the amount of loss incurred from the sale or 
Enter on Schedule 4-A, Line 2, (from Schedule 1, Column 2) the amount of            other disposition of bonds or securities issued by the United States  or its 
                                                                                    instrumentalities or by the State of Delaware or its political subdivisions. 
interest income received from bonds or securities of the United States or U.S. 
Instrumentalities, less applicable expenses.                                        Enter on Schedule 4-B, Line 3, (from Schedule 1, Column 4) the amount of 
                                                                                    interest income received from obligations issued by any State  or political 
Enter on Schedule 4-A, Line 3, (from Schedule 1, Column 3) the amount  of           subdivisions, other than the State of Delaware or its political subdivisions. 
interest income (including discount) received on inter-corporate obligations 
representing advances, loans or similar contractual transactions that meet the      Enter on Schedule 4-B, Line  4,  the  amount of  any percentage depletion 
following requirements: (1) The debtor and creditor corporations are subject to     expense allowable under  Federal Law,  to the  extent it is in excess of cost 
taxation under Delaware Law, and (2) The debtor corporation does not claim a        depletion. 
deduction for such interest payments in determining its entire net income for 
Delaware corporation income tax purposes.                                           Enter on Schedule 4-B, Line 5, the amount of interest (including discounts) 
                                                                                    paid on inter-corporate obligations, where creditor corporation eliminated such 
Enter on Schedule 4-A,  Line 4,  the gain received from the sale or other           interest income from its income on Schedule 4-A, Line 3. 
disposition of bonds or securities issued  by the United States or its 
instrumentalities or by the State of Delaware or its political subdivisions.        Enter on Schedule 4-B, Line 6, charitable donations claimed as a deduction in 
                                                                                    computing Federal taxable income for which the Neighborhood Assistance or 
Enter on Line 2(e) an amount equal to the portion of wages paid or incurred for     the Land & Historic Resource Conservation Delaware income tax credits were 
the taxable year which is disallowed as a deduction for Federal purposes under      granted. 
Subsection (a) of Section 280 C, IRC, relating to the portion of wages for which 
the jobs tax credit is claimed. Attach copy of Federal Form 5884 - Jobs Credit.     Enter on Line 4 the total from Schedule 4-B, Line 7. 
Enter on Schedule 4-A, Line 6, the cost incurred (not to exceed $5,000)    of a     LINE 5 - ENTIRE NET INCOME 
renovation project to remove physical design features in a building that restricts  Enter on Line 5 the amount of Federal taxable income (Line 1) reduced by the 
the full use of the building  by physically handicapped persons.  The term          subtractions entered on Line 2 and increased by the additions entered on Line 
“building”  means a building or structure,  or  a  portion thereof, located in      4. This amount represents entire net income for  purposes of the Delaware
Delaware and open to the public, and includes sidewalks, curbing, driveways,        Income Tax Law.
and entrances connected with or related to the use of the building structure.       If the net income reported on Line 5 is derived entirely from Delaware 
Expenditures incurred to remove architectural barriers or physical design           sources, and no part  of such income is apportionable to  business 
features for the purpose of making the building more accessible to, or usable       activities conducted in other states, enter the amount on Line 5 on Line 
by, handicapped individuals will generally qualify for the deduction, subject to    11 and do not complete Lines 6 through 10. 
the $5,000 limitation. 
                                                                                    LINE 6 - TOTAL NON-APPORTIONABLE INCOME 
Under this provision, qualified renovation expenses incurred after December         Enter on Line 6 the total amount of non-apportionable income (or loss) from 
31, 1978, are deductible in the taxable year in which the project is completed.     Schedule 2, Column 3, Line 8, which is explained below: 
Attach  a  statement  to  your  return  describing  the  project,  the  date  of 
commencement, location, date of completion, and costs incurred.                     SCHEDULE 2 - NON-APPORTIONABLE INCOME ALLOCATED WITHIN 
                                                                                    AND WITHOUT DELAWARE 
Enter on Schedule 4-A, Line 7, the amount of any allowable net operating loss       The State of Delaware has not adopted by statute or regulation the provisions 
carryovers for State of Delaware purposes as limited pursuant to the instruction    of the Uniform Division of Income for  Tax  Purposes  Act (UDITPA). The 
for the Net Operating Loss deduction set forth below beginning on page 6. Do        following items of income (less related  or applicable expenses) must    be 
not make an entry on Schedule 4-A, Line 7, unless your carryback loss was           allocated to Delaware or to another state. If an item  of income, such as 
limited under Delaware Law, and you are carrying forward an amount which            domestic dividends, miscellaneous income, is not specifically exempted or 
differs from your Federal net operating loss carryforward.                          directly allocated under this Section, the item of income must be placed in the 
                                                                                    numerator of the gross receipts factor if Delaware is the state of commercial 
Enter on Schedule 4-A, Line 8, the amount of non-business income or loss.           domicile. Please refer to the following rules of allocation. 
The corporation may  exclude, under limited circumstances, “non-business” 
income (net of  related expenses) earned in the course of non-business              Enter on Line 1, Column 3, Schedule 2, the total income received from rents and 
activities unrelated to those carried out in Delaware.                              royalties  from  tangible  property.  Rent  and/or  royalty  income  received  from 
                                                                                    property physically located in Delaware is allocated in Column 1. Rent and/or 
An entry on this line must be supported by Form 1100NBI (available on the           royalty income received from property physically located outside of Delaware 
Division of Revenue website  at  revenue.delaware.gov) identifying, by              is allocated in Column 2. 
description and amount, each item of non-business income and demonstrating 
that: (1) Delaware is not the state of commercial domicile of the corporation.      Enter on Line 2, Column 3, Schedule 2, the total income received from patent 
Commercial domicile is the principal place from which the trade or business of      and copyright  royalties. Patent and copyright royalties  are to be  allocated 
the corporation is directed or managed. (2) There is lack of a unitary relationship proportionately to Delaware (Column 1) or other States (Column 2) based on 
between the corporation and the payer of the income. If the payer and the           the State in which the product or process protected by the patent is 
corporation are at  all functionally integrated, if they  have any centralized      manufactured or used, or in which the publication protected by the copyright is 
management, or if, between them, they take advantage of economies of scale,         produced or printed. 
then there is not a lack of a unitary relationship. (3) The income at issue is   of 
an investment, as opposed to  an operational,  nature. Interest earned on           Enter on Line 3 the amount of gains (or losses) realized from the sale or other 
temporary investment of working capital, or on investments meant at maturity        disposition of  real property, allocated to the State in which the property is 
or at a later time to be applied to operations, is of an operational nature. (4)    physically located. 
The income and apportionment factors have been appropriately adjusted by 
related expenses and items used to produce the income.                              Enter on Line 4 the amount of gains (or losses) realized from the sale or other 
                                                                                    disposition of depreciable tangible property, allocated to the State in which the 
Enter on Line 2 the total from Schedule 4-A, Line 9.                                property is physically located or normally used in the taxpayer’s business. The 
                                                                                    gain on the sale of rolling stock must be apportioned to the State(s) in which 
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the property was used regardless of the location at the time of the sale. Line 2 the value of all real and tangible personal property rented at the beginning
and at the end of the taxable year allocable (a) within the State of Delaware and
Enter on Line 5 the amount of interest income (including discount) to the (b) within and without the State of Delaware. The rented real and tangible property
extent included in determining entire net income as reported in Schedule 1, is valued at 8 times the annual rental. Include in the factor on the appropriate
Columns 4 and 5, allocated to the state where the transaction took place line, the taxpayer’s share of real and tangible property owned and rented
which resulted in creation of the obligation. In determining the state in which resulting from the taxpayer’s proportionate ownership as a general or limited
the obligation was created, the taxpayer must provide conclusive physical partner in an active partnership. Goods in transit should be included in the
evidence indicating the state in which the obligation was created. Absent property factor of the state to which the goods are to be delivered. Real and
conclusive proof to the contrary, interest income will be allocated to the state tangible personal property owned by the United States Government that is used
of corporate domicile or to the state in which the investment or credit decisions or operated by the taxpayer shall be disregarded.
were made.
Enter on Line 3 the total of Lines 1 and 2.
Enter on Line 6 the total of Lines 1 through 5 for Columns 1, 2 and 3. Enter
on Line 7 the total expenses applicable or directly related to Lines 1 through Enter on Line 4 of Schedule 3(C) the original cost of real and tangible personal
5 of Schedule 2. Indicate the portion of the expenses applicable to the non- property, the income from which is separately allocated in Schedule 2 or is
apportionable income allocated within Delaware (Column 1), without excluded as non-business income on Schedule 4-A, Line 8. Also enter on Line
Delaware (Column 2) and total of both within and without Delaware (Column 3). 4 the value of property currently under construction or property not used in the
All expenses related to the production of allocable income must be supported taxpayer’s business.
by appropriate documentation. If direct expenses cannot be documented, such Subtract Line 4 from Line 3 and enter the remainder on Line 5.
expenses will be determined by multiplying total expenses by a fraction, the
numerator of which is allocable income subject to expense reduction and the Calculate the average value of the property by adding on Line 5 the total
denominator is total income. beginning and total ending values of property within the State of Delaware and
property within and without the State of Delaware respectively and divide each
Subtract Line 7 from Line 6 for Columns 1, 2 and 3. Enter the remainder on Line sum by two.
8. Do not put an amount on Line 8 for Columns 1, 2 and 3 without
completing Lines 1 through 7 for Columns 1, 2 and 3. Enter the remainder Enter on Line 6 the calculated average value of the property.
from Line 8, Column 1, on Line 10 on the front of the return. Enter the
remainder from Line 8, Column 3, on Line 6 on the front of the return. SCHEDULE 3(D) - WAGES, SALARIES AND OTHER COMPENSATION
Enter on Line 1 the total wages, salaries, bonuses, and other compensation paid
LINE 7 - INCOME SUBJECT TO APPORTIONMENT or accrued to employees engaged in employment within the State of Delaware
Subtract Line 6 (total non-apportionable income) from Line 5 (entire net and within and without the State of Delaware during the taxable year. Include in
income) and enter the result (income or loss) on Line 7. the factor on the appropriate line, the taxpayer’s share of wages, salaries,
bonuses, and other compensation paid or accrued to employees, resulting from
SCHEDULE 3(A) - GROSS RECEIPTS SUBJECT TO APPORTIONMENT the taxpayer’s proportionate ownership as a general or limited partner in an
Enter on Line 1 in the column headed “Within Delaware”, the gross receipts from active partnership. Enter on Line 2 the wages, salaries, bonuses, and other
the sales of tangible property physically delivered within Delaware to the compensation paid or accrued to general executive officers. “General Executive
purchaser or his agent located within the State of Delaware (but not including Officers” means the officers of record in the state in which the taxpayer is
delivery to the United States Mail or to a common or contract carrier for incorporated.
shipment to a place outside Delaware). Enter in the column headed “Within and
Without Delaware”, the total gross receipts from the sales of tangible personal Subtract Line 2 from Line 1 and enter the remainder on Line 3.
property both within and without Delaware during the income year. Include in
the factor on the appropriate line, the taxpayer’s share of gross receipts from LINE 8 - APPORTIONMENT PERCENTAGE
the sale of tangible property and gross income from other sources resulting Enter on Line 8 the apportionment percentage calculated on the back of the
from the taxpayer’s proportionate ownership as a general or limited partner in return in Schedule 3-B, Line 3.
an active partnership.
Enter on Line 2 in the column headed “Within Delaware” all other gross
income (if any) including receipts from services rendered within Delaware LINE 9 - DELAWARE APPORTIONABLE INCOME
which are not tax exempt, and which are not directly allocated in Schedule 2. Multiply the income (or loss) subject to apportionment on Line 7 by the
Gross income from sources within Delaware must include taxable dividends, apportionment percentage on Line 8 and enter the result on Line 9.
net gains, or losses on the sale of intangible property and distributions from
partnerships in which the taxpayer is a corporate partner, when the State of
Delaware is maintained as the principal place from which the trade or business LINE 10 - DELAWARE NON-APPORTIONABLE INCOME
of the taxpayer is directed or managed. Other income is considered gross Enter on Line 10 the income (or loss) calculated on the back of the return in
income from a Delaware source when the activity that gives rise to the income Schedule 2, Column 1, Line 8.
is performed within the State of Delaware. Enter on Line 2 in the column
headed “Within and Without Delaware”, all other gross income (if any) from LINE 11 - TOTAL DELAWARE INCOME
other sources both within and without Delaware which are not tax exempt,
and which are not directly allocated in Schedule 2 (attach statement). Do not Enter on Line 11 the sum of Lines 9 and 10.
include on Line 2 the income which is excluded as nonbusiness income on
Schedule 4-A, Line 8. Add the amounts on Line 1 and Line 2 and enter the LINE 12 - DELAWARE TAXABLE INCOME
total on Line 3. If you are selling tangible personal property or providing
services within Delaware, you are liable for a Delaware Business Enter on Line 12 the amount shown on Line 5 or Line 11, whichever is less.
License and the payment of a gross receipts tax on the receipts received This is your Delaware Taxable Income.
from such sales or services.
LINE 13 - TAX COMPUTATION
SCHEDULE 3(B) - DETERMINATION OF APPORTIONMENT To compute the tax liability on Line 13, multiply Line 12, Delaware Taxable
PERCENTAGE Income by 8.7%.
Enter in the numerator on Line 1 the total gross receipts within Delaware from
Line 3 on Schedule 3(A), enter in the denominator on Line 2 the total gross
receipts from within and without Delaware on Line 3 on Schedule 3(A) and LINE 14 - APPROVED NON-REFUNDABLE INCOME TAX CREDITS
compute the respective percentage carried to at least six decimal places. Enter on line 14 the approved non-refundable income tax credits from
Enter the apportionment percentage on Line 3 in Schedule 3(B) and on Line Delaware Form 700, Delaware Income Tax Credit Schedule. Form 700 along
8 on the front of the return. with the approved application(s) for the Tax Credits should be attached to the
SCHEDULE 3(C) - GROSS REAL AND TANGIBLE PERSONAL PROPERTY return.
Enter on Line 1 the original cost value of all real and tangible personal property
owned at the beginning and at the end of the taxable year allocable (a) within the LINE 15 - BALANCE DUE AFTER NON-REFUNDABLE CREDITS
State of Delaware and (b) within and without the State of Delaware. Enter on Subtract line 14 from line 13. Enter the result on line 15.
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LINE 16 - DELAWARE TENTATIVE TAX PAID 
Enter on Line 16 the amount of Delaware tentative tax paid on Forms 1100T. 
Include on this line amounts paid with requests for extensions of time to file. 

LINE 17 - CREDIT CARRYOVER FROM PRIOR YEAR 
Enter on  Line 17 the amount  of credit carryover from the immediately 
preceding taxable year. 

LINE 18 - OTHER PAYMENTS 
Enter on Line 18 the amount of other corporate income tax payments made 
for the taxable year that are not included on Lines 16  and 17. Attach an 
explanation and evidence of payment. 

LINE 19 - APPROVED REFUNDABLE INCOME TAX CREDITS 
Enter on Line 19 the approved refundable income tax credits from Delaware 
Form 700, Delaware Income Tax Credit Schedule. Form 700 along with the 
approved application(s) for the Tax Credits should be attached to the return. 

LINE 20 - TOTAL PAYMENTS AND CREDITS 
Enter on Line 20 the sum of the payments and credits from Lines 16 through 
19. This amount represents the total credits available to be applied against the
tax liability on Line 13.

LINE 21 - BALANCE DUE 
Subtract Line 20 from Line 15. If Line 15 is greater than Line 20, enter on Line 
21 the BALANCE DUE to be paid in full. 

LINE 22 - OVERPAYMENT 
Subtract Line 20 from Line 15. If Line 20 is greater than Line 15, enter on Line 
22(a) the total overpayment available for refund and/or credit carryover. 

Enter on Line 22(b) the amount of refund requested. 

Enter on Line 22(c) the amount of credit carryover requested. The sum of Lines 
22(b) and 22(c) must be equal to the amount entered on Line 22(a). 

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                                                    NET OPERATING LOSS DEDUCTIONS 

The amount of a deduction for the Net Operating Loss (NOL) recognized for Delaware corporate income tax purposes is limited to the amount recognized for 
Federal purposes. For tax years ending after 2020, this limitation on the amount of the NOL recognized for Delaware corporate income tax purposes applies 
without regard to whether the corporate taxpayer files either a separate company federal income tax return or a consolidated federal income tax return. The NOL 
deduction is calculated in accordance with the provisions of the Internal Revenue Code, and no modification to the amount of the net operating loss is allowed. 
Because you are required to file an 1120 Pro forma with your Delaware corporate income tax return, for tax years ending after 2020, the NOL on the 1120 Pro 
forma cannot exceed the amount claimed on your federal return filed for the taxable year in which you were included as a party.     A copy of the Federal
Consolidated 1120 Form including a schedule of the federal NOLs as utilized and as are available for carryforward with respect to such federal return, 
along with the 1120 Pro forma and a schedule indicating the loss year(s) and the NOL amount(s) being carried back and/or carried forward must be 
attached to the Delaware 1100 return.  

Section 382 of the Internal Revenue Code of 1986 limits the use of NOL carryforwards by purchasing corporations acquiring corporations with tax losses 
which are to be used to offset the income of the purchasing corporation. The limitation requirements affect Federal taxable income of the purchasing corporation. 
There are no provisions within the Delaware corporate income tax code for modification of Federal taxable income due to the Section 382 limitations. 
Effective for taxable years ending after June 30, 1990 net operating loss carrybacks in excess of $30,000 for each carryback year will no longer be deductible 
for Delaware corporate income tax purposes. In amending the carryback year, enter on Line 2(g), Form 1100X, the amount of the net operating loss carried 
back which cannot exceed $30,000. 
A corporation that has a net operating loss and has filed a Corporation Application for Tentative Refund on Federal Form 1139 must file an amended 1100X 
and attach a copy of the amended 1120X (Pro forma).  Delaware does not have a tax form equivalent to the Federal Form 1139. 

A copy of the amended Federal Consolidated 1120 Form along with the amended 1120X (Pro forma) and a schedule indicating the loss year(s) 
and the NOL amount(s) being carried back and/or carried forward must be attached to the Delaware 1100X return.  

Prior to the enactment of the Tax Cuts and Jobs Act of 2017 (P.L. 115-97, 12/22/2017), the Delaware NOL provisions were as follows: 
•    Carryforward for 20 years for returns with a tax period after August 1997 and 15 years for returns before August 1997
•    Carryback is limited to 2 years with a $30,000.00 limit per year
•    Loss year’s loss is pre-apportionment and is limited to federal NOL which is reported on Line 1 of the Delaware return 
•    Losses can only be utilized to the extent of federal taxable income on Line 1 of the Delaware return
•    Losses cannot be used to offset any additions (modifications to Line 1 of the Delaware return) 

After December 31, 2020, the Delaware NOL provisions are as follows: 
•    The 2-year Carryback has been eliminated except for certain businesses in farming with a $30,000.00 limit per year
•    Losses Carried forward limited to 80% of the taxable income on Line 1 of the Delaware return.
•    NOLs allowed to be Carried forward indefinitely
•    NOLs incurred by property and casualty insurance companies can Carryback 2 years with a $30,000.00 limit per year and Carryforward 20 years to
     offset 100% of taxable income on Line 1 of the Delaware return.

Under no circumstances is there to be an adjustment on an Amended Return, Form 1100X on Line 4(a), to reflect a decrease on Schedule 4-B, Line 1 of the 
Delaware corporation income tax return of the carryback year for the refund of such taxes arising as a result of the net operating loss deduction. 
Cash method taxpayers must include any refund of state corporation income taxes as a negative amount on Schedule 4-B, Line 1 in the year received, while 
other taxpayers will include such refunds as a negative amount on Schedule 4-B, Line 1 under their regular method of accounting.  
In the case of a merger of two or more unrelated    corporations, each corporation’s unused carryover net operating loss is carried over into the surviving 
corporation. However, if there is a merger of two or more related corporations, then the net operating loss is limited to the amount of net operating loss not 
absorbed through consolidation prior to the merger. 

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