Bill Text: DE HB253 | 2015-2016 | 148th General Assembly | Draft
Bill Title: An Act To Amend Title 30 Of The Delaware Code Relating To Earned Income Tax Credit.
Spectrum: Slight Partisan Bill (Democrat 15-9)
Status: (Introduced - Dead) 2016-06-16 - Reported Out of Committee (APPROPRIATIONS) in House with 4 On Its Merits [HB253 Detail]
Download: Delaware-2015-HB253-Draft.html
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SPONSOR: |
Rep. Baumbach & Sen. Sokola & Sen. Lavelle |
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Reps. Bentz, J. Johnson, Keeley, Kowalko, Longhurst, Lynn, Mitchell, Mulrooney, Osienski, Potter, B. Short, Viola; Sens. Cloutier, Hall-Long, Hocker, Lopez, Pettyjohn, Richardson, Townsend |
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HOUSE OF REPRESENTATIVES 148th GENERAL ASSEMBLY |
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HOUSE BILL NO. 253 |
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AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO EARNED INCOME TAX CREDIT. |
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Three-fifths of all members elected to each house thereof concurring therein):
Section 1. Amend §1117, Title 30 of the Delaware Code by making deletions as shown by strike through and insertions shown by underline as follows:
§1117 Earned income tax credit.
(a) (1) An For any tax year prior to
2017, an individual who is a resident of this State shall be entitled to a nonrefundable
credit against the individual's tax otherwise due under this chapter in the
amount of 20% of the corresponding federal earned income credit allowed
pursuant to §32 or successor provision of the Internal Revenue Code [26 U.S.C.
§32].
(2)For tax year 2017, an individual who is a resident of this State shall be entitled to a credit in the amount of 6% of the corresponding federal earned income credit allowed pursuant to §32 or successor provision of the Internal Revenue Code [26 U.S.C. §32].The credit under this subsection shall increase to 7% for tax year 2018, and shall increase by 1% each tax year thereafter until it reaches 15% for tax year 2026, when it shall no longer increase.
(b) In the case of spouses who file a joint federal return but who elect to determine their Delaware taxes separately, the credit allowed under subsection (a) of this section may only be used by the spouse with the greater tax otherwise due, computed without regard to this credit.
(c) In no event shall the credit allowed under paragraph (1) of subsection (a) of this section exceed the tax otherwise due under this chapter.However, the credit allowed under paragraph (2) of subsection (a) of this section may exceed the tax otherwise due under this chapter.
SYNOPSIS
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This bill changes the earned income tax credit from nonrefundable to refundable and capable of exceeding the tax amount otherwise due.The credit is reduced from 20% of the corresponding federal earned income credit to 6% for 2017.That percentage increases 1% each year until it reaches 15% in 2026. |
