AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO THE CHILD AND DEPENDENT CARE EXPENSE TAX CREDIT.

Plain English Breakdown

The bill has passed committee but is currently assigned to the Appropriations Committee; final passage by both chambers or executive action is not confirmed in the provided text.

Delaware Child Care Tax Credit Increase

This bill changes Delaware law so that residents can claim a state tax credit equal to their full federal child and dependent care tax credit.

What This Bill Does

• Increases the state match for the child and dependent care expense tax credit from 50% to 100% of the federal amount.
• Amends Title 30, Section 1114 of the Delaware Code to reflect this new percentage.
• Keeps the rule that the total credit cannot be larger than the taxes a person owes to the state.

Who It Names or Affects

• Delaware residents who pay income tax and qualify for the child and dependent care expense credit.
• Married spouses in Delaware who choose to calculate their state taxes separately while filing a joint federal return, limiting the credit application based on taxable income.

Terms To Know

Tax Credit

An amount that reduces the total tax you owe dollar for dollar, rather than just lowering your taxable income.

Federal Match

The state giving a credit based on how much money the federal government allows as a credit.

Limits and Unknowns

• The effective date is not listed in the provided text, so it is unknown when this law starts.
• This summary reflects a version that passed committee but has been assigned to another committee as of March 2026.

Official Summary Text

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO THE CHILD AND DEPENDENT CARE EXPENSE TAX CREDIT.
This Act increases the state child and dependent care expense tax credit from the current 50% match to a full 100% match with the federal child and dependent care expense tax credit.

Current Bill Text

Legislation Document

SPONSOR:

Rep. Ross Levin & Sen. Lockman

Reps. Berry, Chukwuocha, Heffernan, K. Johnson, Lambert, Phillips, Michael Smith, Snyder-Hall; Sens. Cruce, Hoffner, Pinkney, Seigfried, Richardson

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE BILL NO. 274

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO THE CHILD AND DEPENDENT CARE EXPENSE TAX CREDIT.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend § 1114, Title 30 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 1114. Child care and dependent care expense credit.

(a) A resident individual shall be entitled to a credit against that individual’s tax otherwise due under this chapter in the amount of

50 percent

100%

of the child and dependent care expense credit allowable for federal income tax purposes for the same tax year. In no event shall the allowable credit under this subsection exceed the tax otherwise due under this chapter.

(b) In the case of spouses who file a joint federal return but who elect to determine their Delaware taxes separately, the credit allowed pursuant to this

subsection

section

may only be applied against the tax imposed on the spouse with the lower taxable income, computed without regard to such credit, and shall not exceed such tax.

SYNOPSIS

This Act increases the state child and dependent care expense tax credit from the current 50% match to a full 100% match with the federal child and dependent care expense tax credit.