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HS1FORHB274 • 2025

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

Children Taxes

Passed Legislature

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

Sponsor: Ross Levin
Last action: 2026-03-19
Official status: House Appropriations 3/19/26
Effective date: Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Increasing Child and Dependent Care Tax Credit

The bill increases the state child and dependent care expense tax credit from 50% to 100% of the federal credit, effective for taxable years starting in 2027.

What This Bill Does

Increases the state's child and dependent care expense tax credit to match fully with the federal tax credit at 100%. This change starts from January 1, 2027.
Limits the allowable credit so it cannot be more than what a person owes in taxes.
Makes technical changes to make sure the law follows Delaware's rules for writing laws.

Who It Names or Affects

Delaware residents who pay state income tax and claim child or dependent care expenses on their federal tax return.

Terms To Know

Tax Credit: A reduction in the amount of taxes a person owes, based on certain expenses like childcare costs.
Technical Corrections: Changes made to fix small errors or make laws clearer without changing their main purpose.

Limits and Unknowns

The bill does not specify what happens if the tax credit amount is more than a person's total state tax liability.
It is unclear when this bill will become law after passing through committees and being signed by the governor.

Bill History

2026-03-19 Delaware General Assembly
Assigned to Appropriations Committee in House
2026-03-18 Delaware General Assembly
Reported Out of Committee (Revenue & Finance) in House with 10 On Its Merits
2026-03-05 Delaware General Assembly
Adopted in lieu of the original bill HB 274, and Assigned to Revenue & Finance Committee in House

Official Summary Text

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO THE CHILD AND DEPENDENT CARE EXPENSE TAX CREDIT.
Like House Bill No. 274, House Substitute for House Bill No. 274 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. The substitute is different from House Bill No. 274 in that it makes this increase applicable to taxable years beginning on or after January 1, 2027.
This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

Current Bill Text

Read the full stored bill text

Legislation Document

SPONSOR:

Rep. Ross Levin & Sen. Lockman

Rep. Snyder-Hall

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE SUBSTITUTE NO. 1

FOR

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

of the child and dependent care expense credit allowable for federal income tax purposes for the same tax year.

In no event shall the

The

allowable credit under this subsection

may not

exceed the tax otherwise due under this chapter.

(b) For taxable years beginning on or after January 1, 2027, a resident individual is entitled to a credit against that individual’s tax otherwise due under this chapter in the amount of 100% of the child and dependent care expense credit allowable for federal income tax purposes for the same tax year. The allowable credit under this subsection may not exceed the tax otherwise due under this chapter.

(b)

(c)

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

may

not exceed such tax.

SYNOPSIS

Like House Bill No. 274, House Substitute for House Bill No. 274 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. The substitute is different from House Bill No. 274 in that it makes this increase applicable to taxable years beginning on or after January 1, 2027.

This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.