This amendment adds a sunset for the changes to bonus depreciation in House Bill No.

Plain English Breakdown

The amendment was stricken, so these changes did not take effect.

Amendment Adding an End Date for Bonus Depreciation Changes

This amendment sets a January 1, 2031 end date for certain bonus depreciation rules in House Bill No. 255 and requires the Department of Finance to report on revenue impacts at a December 2027 meeting.

What This Bill Does

• Adds an end date of January 1, 2031, to specific bonus depreciation changes in House Bill No. 255.
• Requires the Department of Finance to present a report on revenue impacts and federal law updates at the December 2027 DEFAC meeting.
• States that property placed into service before January 1, 2031, keeps its current depreciation schedule even after the rule ends.
• Clarifies that research and development tax changes in House Bill No. 255 apply only to tax years 2022 through 2025.

Who It Names or Affects

• Businesses placing property into service before January 1, 2031.
• The Department of Finance regarding reporting requirements.
• The Delaware Economic and Financial Advisory Council (DEFAC) receiving the report.

Terms To Know

Bonus depreciation

A tax rule that lets businesses deduct a large part of the cost of new equipment in the first year instead of over many years.

Sunset

An end date after which a law or specific provision stops working automatically.

Decoupling

When state tax rules differ from federal tax rules, often to keep using an old rule that the federal government has changed.

Limits and Unknowns

• This amendment was stricken in the House on November 13, 2025, meaning it did not become law.
• The text does not specify how much money the state will gain or lose from these changes until the report is written.

Official Summary Text

This amendment adds a sunset for the changes to bonus depreciation in House Bill No. 255, and requires the Department of Finance to present a report regarding the actual revenue impact of this bill, as well as updates on federal law and recommendations for future tax policy at the December 2027 DEFAC meeting.
The decoupling from §§ 70301 and 70307, P.L. 119-21, will sunset after the 2030 tax year. This is when the provisions of P.L. 119-21 for qualified production property are scheduled to expire under federal law. Property placed in service during the decoupling period will continue to be treated under the same schedules for depreciation after the decoupling sunsets. Property placed in service thereafter shall be treated under the then-current federal law.
The research and development changes in House Bill No. 255 apply only to the 2022 through 2025 tax years, so there is no need to sunset them.

Current Bill Text

Legislation Document

SPONSOR:

Rep. Harris

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE AMENDMENT NO. 1

TO

HOUSE BILL NO. 255

AMEND House Bill No. 255 on line 17 by inserting “

and before January 1, 2031,

” after “

January 19, 2025,

” as it appears therein.

FURTHER AMEND House Bill No. 255 on line 21 by inserting “

placed in service before January 1, 2031

,” after “

P.L.119-21,

” as it appears therein.

FURTHER AMEND House Bill No. 255 on line 29 by inserting

“

and before January 1, 2031,

” after “

December 31, 2025,

” as it appears therein.

FURTHER AMEND House Bill No. 255 on line 34 by inserting “

and before January 1, 2031,

” after “

December 31, 2025,

” as it appears therein.

FURTHER AMEND House Bill No. 255 by inserting the following after line 41:

“Section 5. At the December 2027 meeting of the Delaware Economic and Financial Advisory Council, the Department of Finance shall prepare and present a report regarding the actual impact of the tax changes in this House Bill No. 255 on State revenue. The report must also provide an update regarding any additional changes to federal tax law’s bonus depreciation terms and federal sunset dates. The report should include recommendations and present options regarding the continuance of the bonus depreciation provisions of this Act.”.

SYNOPSIS

This amendment adds a sunset for the changes to bonus depreciation in House Bill No. 255, and requires the Department of Finance to present a report regarding the actual revenue impact of this bill, as well as updates on federal law and recommendations for future tax policy at the December 2027 DEFAC meeting.

The decoupling from §§ 70301 and 70307, P.L. 119-21, will sunset after the 2030 tax year. This is when the provisions of P.L. 119-21 for qualified production property are scheduled to expire under federal law. Property placed in service during the decoupling period will continue to be treated under the same schedules for depreciation after the decoupling sunsets. Property placed in service thereafter shall be treated under the then-current federal law.

The research and development changes in House Bill No. 255 apply only to the 2022 through 2025 tax years, so there is no need to sunset them.