DelawareDelaware residents could claim refundable tax credit for 2025 and later years
For tax years beginning on or after January 1, 2025, eligible Delaware residents could claim a refundable state credit worth 20% of their federal earned income credit.
What it does
For tax years beginning on or after January 1, 2025, eligible Delaware residents could claim a refundable state credit worth 20% of their federal earned income credit. They could receive any amount above their state tax bill.
The bill would state that a previously enacted 4.5% refundable credit applied to tax years beginning on or after January 1, 2021, and before January 1, 2025. For those years, eligible residents could instead choose a 20% credit capped at their state tax bill.
Argument forA refundable credit could put money in eligible residents’ hands even when their Delaware tax bill is smaller than the credit.
Argument againstPaying credit amounts above residents’ state tax bills could leave less state money for other needs if the bill passes.
More detail
Eligible residents could claim a refundable Delaware tax credit worth 20% of their federal earned income credit. The credit would cover Delaware residents. Residents must qualify for the federal earned income credit. This would apply to tax years beginning on or after January 1, 2025.
The bill would state when the previously enacted 4.5% refundable credit took effect. This covers Delaware residents who qualify for the federal earned income credit. For those tax years, residents could choose a refundable credit worth 4.5% of their federal credit or a 20% credit capped at their Delaware tax bill. This covers tax years beginning on or after January 1, 2021, and before January 1, 2025.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2025
- May 22Assigned to Appropriations Committee in HouseLatest
- May 22Reported Out of Committee (Revenue & Finance) in House with 6 On Its MeritsMinor
- May 22Amendment HA 1 to HB 99 - Introduced and Placed With BillMinor
- Mar 27Introduced and Assigned to Revenue & Finance Committee in HouseIntroduced
Taxes & Budget