DelawareDelaware would refund qualifying residents’ unused child and dependent care credits
Starting with 2026 tax years, Delaware residents under the $60,000 income limit could claim a refundable state credit equal to their allowed federal care credit.
What it does
For tax years starting in 2026, Delaware residents below the $60,000 federal adjusted gross income limit could claim a state care credit equal to their allowed federal credit. Any amount above state tax owed would be refunded.
Argument forRefunding credit above state tax owed could help eligible residents with little tax due pay for care.
Argument againstA resident just above the $60,000 income limit might have care costs but could not use this refundable credit.
More detail
Delaware would allow eligible residents to claim a state child and dependent care credit equal to their allowed federal credit and refund any amount above state tax owed. It covers Delaware residents filing as single, head of household, or a qualifying widowed spouse. Married residents filing jointly or on combined separate returns are also covered. Residents must have an allowed federal child and dependent care credit for the same tax year. Their federal adjusted gross income must be less than $60,000. Married filers use their combined income for this limit. It would apply to tax years beginning after December 31, 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
- 2026
- May 21Assigned to Appropriations Committee in HouseLatest
- May 20Reported Out of Committee (Revenue & Finance) in House with 4 Favorable, 3 On Its MeritsMinor
- Apr 30Adopted in lieu of the original bill HB 284, and Assigned to Revenue & Finance Committee in HouseIntroduced
Taxes & Budget