Bill > HB99

This bill amends Delaware's earned income tax credit (EITC) law by increasing the refundable portion of the tax credit for residents. Specifically, for tax years beginning on or after January 1, 2025, individuals who are Delaware residents can claim a credit equal to 20% of their corresponding federal earned income tax credit. Prior to 2025, residents had two options: either claim 20% of the federal EITC not exceeding their tax liability, or claim 4.5% of the federal EITC with any amount over their tax liability being refundable. The bill clarifies that the 4.5% refundable credit option was first available for tax years beginning on or after January 1, 2021. The earned income tax credit is designed to provide financial support to low to moderate-income working individuals and families by reducing their state tax burden. For married couples filing separately, the credit can only be claimed by the spouse with the higher tax liability. The changes aim to provide additional tax relief to working Delawareans by expanding the refundable portion of the state's earned income tax credit.

Budget and Finance

https://legis.delaware.gov/BillDetail?LegislationId=142018