Delaware would match residents’ federal child and dependent care credit

Delaware would allow residents to claim a state income tax credit equal to 100% of their federal child and dependent care credit. The credit is for Delaware residents who qualify for the federal child and dependent care credit for the same tax year. The credit cannot exceed the Delaware income tax the resident owes. If spouses file a joint federal return but calculate their Delaware taxes separately, only the spouse with lower taxable income may use the credit. The 100% credit would apply to tax years beginning on or after January 1, 2027.