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Straight-ahead summaries built from the official bill text. We keep the source links front and center and leave the decision up to you.

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SB299 • 2025

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO PERSONAL INCOME TAX CREDITS APPLICABLE TO OVERTIME INCOME.

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO PERSONAL INCOME TAX CREDITS APPLICABLE TO OVERTIME INCOME.

Labor Taxes
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Last action
2026-05-05
Official status
Introduced and Assigned to Elections & Government Affairs Committee in Senate
Effective date
Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Delaware Overtime Tax Credit Act

This act creates a new tax credit for Delaware residents who earn overtime pay under the Federal Fair Labor Standards Act.

What This Bill Does

  • Creates a $15,000 tax credit for Delaware residents who work overtime as defined by the Federal Fair Labor Standards Act.
  • Phases out the tax credit for individuals earning over $125,000 and joint filers earning over $250,000.
  • Fully removes the tax credit for individuals earning $150,000 or more and joint filers earning $300,000 or more.

Who It Names or Affects

  • Delaware residents who earn overtime pay under federal labor laws
  • Individuals with income over certain thresholds

Terms To Know

Federal Fair Labor Standards Act
A law that sets minimum wage, overtime pay, and other standards for workers in the United States.
Tax credit
An amount subtracted from a person's tax bill to reduce their taxes owed.

Limits and Unknowns

  • The exact impact on state revenue is not specified.
  • It does not apply to non-residents of Delaware.

Bill History

  1. 2026-05-05 Delaware General Assembly

    Introduced and Assigned to Elections & Government Affairs Committee in Senate

Official Summary Text

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO PERSONAL INCOME TAX CREDITS APPLICABLE TO OVERTIME INCOME.
This Act creates a new tax credit in the amount of $15,000 for Delaware residents, applicable to overtime paid under the Federal Fair Labor Standards Act for compensation paid to workers that work over 40 hours in a week. The credit phases out for resident individuals earning $125,000 and joint filers earning $250,000, and is fully phased out for individuals earning $150,000 and joint filers earning $300,000.