HS1FORHB284 • 2025

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO THE CHILD CARE 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: Yearick
Last action: 2026-05-21
Official status: Lieu/Substituted 4/30/26
Effective date: Not listed

Plain English Breakdown

The official source material does not provide specific details on how the increased credit will be funded or if there are limits to the refund amount.

Act to Increase Child Care Tax Credit

This act doubles the child care and dependent care expense tax credit for low-income Delaware residents with federal adjusted gross income under $60,000 or married couples filing jointly with combined income under $120,000, making it refundable if it exceeds their tax liability.

What This Bill Does

Doubles the child care and dependent care expense tax credit for resident households with federal adjusted gross income of less than $60,000 or married couples filing jointly with combined income under $120,000.
Makes the increased tax credit refundable if it exceeds the amount of taxes owed by a resident.

Who It Names or Affects

Delaware residents with federal adjusted gross income under $60,000 or married couples filing jointly with combined income under $120,000.
Taxpayers in Delaware who use child care and dependent care services.

Terms To Know

Refundable tax credit: A type of tax credit that can be paid to a taxpayer even if the credit amount is larger than their tax liability, resulting in a refund.
Federal adjusted gross income (FAGI): The total income earned by an individual or household before taxes and certain deductions are applied, as reported on federal tax returns.

Limits and Unknowns

This act does not specify how the increased credit will be funded.
It is unclear if there are any limits to the amount of refund that can be received from this new provision.

Bill History

2026-05-21 Delaware General Assembly
HS 2 for HB 284 - Assigned to Appropriations Committee in House
2026-05-20 Delaware General Assembly
HS 2 for HB 284 - Reported Out of Committee (Revenue & Finance) in House with 4 Favorable, 3 On Its Merits
2026-04-30 Delaware General Assembly
Substituted in House by HS 2 for HB 284
2026-03-24 Delaware General Assembly
Adopted in lieu of the original bill HB 284, 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 CARE AND DEPENDENT CARE EXPENSE TAX CREDIT.
This Act doubles the childcare and dependent care expense tax credit for resident households with federal adjusted gross income of less than $60,000 ($120,000 for married filing jointly or married filing combined separate on the same return) and makes that credit refundable. For all others the tax credit remains unchanged.

Current Bill Text

Read the full stored bill text

Legislation Document

SPONSOR:

Rep. Yearick & Rep. Berry & Sen. Hocker

Reps. Gray, Hilovsky, Michael Smith; Sens. Buckson, Hoffner, Wilson

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE SUBSTITUTE NO. 1

FOR

HOUSE BILL NO. 284

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO THE CHILD CARE 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)

(1)

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 allowable credit under this subsection exceed the tax otherwise due under this chapter.

(b)

(2)

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 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.\

(b) In lieu of the credit set forth in subsection (a) of this section, a resident individual with federal adjusted gross income of less than $60,000, or in the case of spouses filing jointly or married and filing combined separate on the same tax return, with combined federal adjusted gross income of less than $120,000, shall be 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 amount of the allowable credit under this subsection that exceeds the tax otherwise due under this chapter is refundable. Taxpayers who are married and file separately, on separate returns, shall not be eligible for the credit under this subsection.

Section 2. This Act shall become effective for tax years beginning after December 31, 2025.

SYNOPSIS

This Act doubles the childcare and dependent care expense tax credit for resident households with federal adjusted gross income of less than $60,000 ($120,000 for married filing jointly or married filing combined separate on the same return) and makes that credit refundable. For all others the tax credit remains unchanged.