As used in this chapter and in §§ 2061 through 2063 of this title:

(1) “Affiliated group” has the meaning provided by § 1504 of the Internal Revenue Code [26 U.S.C. § 1504], but including for this purpose:

a. Foreign corporations that would otherwise not be includible corporations; and

b. Partnerships, as defined in § 7701(a)(2) of the Internal Revenue Code [26 U.S.C. § 7701(a)(2)], that would be includible if they were classified as corporations, the interests in which were treated as stock and the ownership of such interests satisfied the stock ownership requirements of the said § 1504 [26 U.S.C. § 1504].

(2) “Certified,” “certificate” or “certification” means or refers to the written determination of the Director of Revenue issued to a corporation that it qualifies as a Headquarters Management Corporation pursuant to the provisions of this chapter.

(3) “Director of Revenue” and “Director” mean the individual appointed as Director of the State Division of Revenue or such individual’s designee.

(4) “Expenditure” means a payment of an operating expense incurred in this State by a Headquarters Management Corporation.

(5) “Headquarters Management Corporation” means an entity treated as a corporation under the Internal Revenue Code of the United States (Title 26 of the United States Code) that:

a. Makes an election to be taxed as a Headquarters Management Corporation; and

b. Whose activities in this State are certified by the Director of Revenue to be confined to investment activities and/or the provision of headquarters services to itself and members of its affiliated group.

(6) “Headquarters services” includes, without limitation, accounts receivable and payable, employee benefit plan, insurance, legal, payroll, data processing, purchasing, and tax, financial and securities accounting, reporting and compliance services provided by a Headquarters Management Corporation to itself and members of its affiliated group, and the maintenance and management of the intangible investments of other members of its affiliated group.

(7) “Intangible investments” includes, without limitation, investments in stocks, bonds, notes and other debt obligations (including debt obligations of affiliates), patents, patent applications, trademarks, trade names and similar types of intangible assets.

(8) “Investment activities” means the maintenance and management by a Headquarters Management Corporation of its intangible investments and the collection and distribution of the income from such investments or from tangible property physically located outside this State.

(9) “Operating expense” means a Headquarters Management Corporation’s cost of its wages, salaries and benefits, and the cost, if any, of other services obtained by it in connection with its investment activities and for the provision of headquarters services to itself and members of its affiliated group.

(10) “Qualified employee” means an individual:

a. Employed by a Headquarters Management Corporation after the effective date of its original license on a regular basis 35 or more hours per week to provide headquarters services and/or investment activities within this State; and

b. Who was not in any capacity an employee in this State on a regular basis 35 or more hours per week of the Headquarters Management Corporation or of any member of its affiliated group before the effective date of its original license.

(11) Terms defined in § 502 of this title or in § 1901 of this title shall have the same meaning when used in this chapter and in §§ 2061 through 2063 of this title.

74 Del. Laws, c. 256, § ?1;