Bill > HB284

This bill amends Delaware's tax code to modify the Child Care and Dependent Care Expense Tax Credit, which helps residents offset the cost of care for qualifying dependents while they work or look for work. Currently, the credit is 50% of the federal credit, with specific rules for married couples filing separately. This bill introduces a new option: for individuals with a federal adjusted gross income (AGI) below $60,000, or for married couples filing jointly or combined separate with a combined federal AGI below $120,000, the credit will be 100% of the federal credit. Importantly, any portion of this 100% credit that exceeds the individual's tax liability will be refunded to them, making it a "refundable" credit, meaning they can receive money back even if they owe no tax. However, married individuals filing separately on their own individual returns will not be eligible for this enhanced, refundable credit. This change is set to take effect for tax years beginning after December 31, 2025.

Budget and Finance

https://legis.delaware.gov/BillDetail?LegislationId=142845