Section 1902(b)(8) of the Delaware Code provides income tax exemption for any corporation that limits its Delaware-based business to: (1) the maintenance and management of its intangible investments; and (2) the collection and distribution of income from such investments or from tangible property physically located outside of Delaware. By creating a Delaware Investment Holding Company, corporations can receive significant state income tax savings on passive income, dividends, interest, capital gains and royalties. The exemption applies to holding companies, as well as certain operating companies that conduct their business outside of Delaware. Intangible investments include: stocks, bonds, notes and other obligations, patents and patent applications, trademarks and other intellectual property.
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