HS2FORHB284 • 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: House Appropriations 5/21/26
Effective date: Not listed

Plain English Breakdown

The bill summary does not provide specific details on how the tax credit applies to non-residents or those with income above $60,000.

Act to Change Child Care Tax Credit

This act doubles the child care and dependent care expense tax credit for Delaware resident households with federal adjusted gross income of less than $60,000 and makes it refundable.

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.
Makes the increased tax credit refundable if it exceeds the amount of tax owed.

Who It Names or Affects

Delaware resident households with federal adjusted gross income of less than $60,000 who use child care or dependent care services.
Taxpayers filing jointly or as married residents filing separate returns combined at $60,000.

Terms To Know

refundable tax credit: A tax credit that can be paid to a taxpayer even if it exceeds the amount of tax owed.
federal adjusted gross income (FAGI): The total income from all sources minus certain deductions, as reported on federal tax returns.

Limits and Unknowns

This act only affects residents of Delaware.
The changes will take effect for tax years starting after December 31, 2025.
Other taxpayers not meeting the income criteria are unaffected by these changes.

Bill History

2026-05-21 Delaware General Assembly
Assigned to Appropriations Committee in House
2026-05-20 Delaware General Assembly
Reported Out of Committee (Revenue & Finance) in House with 4 Favorable, 3 On Its Merits
2026-04-30 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 and makes that credit refundable, and differs from HS 1 by clarifying the credit is for residents only (as is the case currently), and corrects the means test of federal adjusted gross income threshold for taxpayers filing "joint" and "married filing separate combined" at $60,000. 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, Jones Giltner, Carson, D. Short, Wilson-Anton; Sens. Buckson, Hoffner, Wilson

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE SUBSTITUTE NO. 2

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,

of this section, a resident individual filing single, head of household or qualifying widow(er) with federal adjusted gross income of less than $60,000, or resident spouses filing jointly with combined federal adjusted gross income of less than $60,000, or married residents filing combined separate with combined federal adjusted gross income of less than $60,000 shall be entitled to a credit against the 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.

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 and makes that credit refundable, and differs from HS 1 by clarifying the credit is for residents only (as is the case currently), and corrects the means test of federal adjusted gross income threshold for taxpayers filing "joint" and "married filing separate combined" at $60,000. For all others, the tax credit remains unchanged.