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HA3TOHB255 • 2025

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

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

Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Last action
2025-11-13
Official status
Passed By House. Votes: 36 YES 3 NOT VOTING 2 ABSENT
Effective date
Not listed

Plain English Breakdown

The official text cuts off mid-sentence at the end ('adds the requireme'), so it is unclear if there are other differences between this amendment and House Amendment No. 1 besides the reporting requirement.

Amendment to Set an End Date for Bonus Depreciation Changes

This amendment sets a date when changes to bonus depreciation rules will end and requires the Department of Finance to report on revenue impact at a future meeting.

What This Bill Does

  • Adds an end date, or sunset, for changes made to bonus depreciation in House Bill No. 255.
  • Requires the Department of Finance to present a report about actual revenue impact and federal law updates at the December 2027 DEFAC meeting.
  • Ends state rules that differ from specific sections of federal law after the 2030 tax year.
  • Keeps depreciation schedules for property used during the special period even after the end date passes.
  • States that research and development changes in House Bill No. 255 do not need an end date because they already stop after the 2025 tax year.

Who It Names or Affects

  • The Department of Finance, which must create a report on tax revenue.
  • Businesses or owners who place property in service during the time when state rules differ from federal rules.
  • Taxpayers subject to bonus depreciation schedules under House Bill No. 255.

Terms To Know

Sunset
A date set in a law when specific parts of that law stop working or expire.
Bonus Depreciation
A tax rule mentioned in the bill regarding how businesses write off property costs, though the official text does not define it further.
Decoupling
When a state stops following federal tax rules and uses its own different rules instead.

Limits and Unknowns

  • The official text does not list the specific dollar amounts or exact revenue numbers expected from these changes.
  • The effective date for when this amendment starts is not listed in the provided information.
  • The full details of House Amendment No. 1 are not included, only that this version adds a reporting requirement.

Bill History

  1. 2025-11-13 Delaware General Assembly

    Introduced and Placed With Bill

  2. 2025-11-13 Delaware General Assembly

    Passed By House. Votes: 36 YES 3 NOT VOTING 2 ABSENT

Official Summary Text

This amendment adds a sunset for the changes to bonus depreciation in House Bill No.
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.
This amendment is identical to House Amendment No. 1 except that it adds the requireme