Bill > HB255

This bill amends Delaware's tax code to "decouple" certain provisions from the federal One Big Beautiful Bill Act (OBBBA), which means the state will not automatically adopt all federal tax law changes. Specifically, the bill modifies how businesses can claim deductions for research and experimental expenditures, property depreciation, and qualified production property between 2022 and 2031. For domestic research expenditures made from 2021 to 2024, businesses can continue using pre-OBBBA tax treatment. For property acquired between 2025 and 2031, companies can continue using older depreciation methods instead of the new federal guidelines. The bill requires the Department of Finance to prepare a report in December 2027 analyzing the actual revenue impact of these tax changes and provide recommendations about continuing the bonus depreciation provisions. The changes will apply to tax years beginning on or after January 1, 2022, with some provisions becoming effective on January 1, 2026. The bill also includes a severability clause, meaning if any part of the act is found invalid, the rest of the act remains in effect.

Government Affairs

https://legis.delaware.gov/BillDetail?LegislationId=142718