Delaware-2023-HB454-Draft

SPONSOR:	Rep. Ramone & Sen. Buckson & Sen. Wilson
Reps. Hensley, Postles, D. Short, Shupe, Michael Smith, Spiegelman, Yearick

HOUSE OF REPRESENTATIVES

152nd GENERAL ASSEMBLY

HOUSE BILL NO. 454

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO SMALL BUSINESS TAX CREDITS.

WHEREAS, it is the intent of the General Assembly to assist small businesses who have survived the COVID-19 pandemic; and

WHEREAS, small businesses are the heart of economic activity in Delaware; and

WHEREAS, COVID-19 shut down many small businesses in 2020; and

WHEREAS, many small businesses continue to struggle in the post-COVID-19 economy.

NOW, THEREFORE:

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend Chapter 20, Title 30 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

Subchapter XI. Small Business COVID-19 Tax Credit.

§ . Small Business COVID-19 Tax Credit.

(a) For the purpose of computing taxable income under Chapter 11 or Chapter 19 of this title, relating to the personal income tax and the corporation income tax due for tax years beginning after December 31, 2024, the Secretary of Finance shall allow a one-time tax credit in an amount of 25% of a small businesses’ gross receipts for tax year 2019.

(b) A small business must apply for this tax credit no later than December 1, 2024.

(1) “Full-time employee” means a person or a combination of part-time persons employed for at least 35 hours per week, not including absences excused by reason of vacations, illness, holidays, or similar causes.

(2) “Gross receipts” shall have the same definition as that in § 1903(b) of this title.

(3) “Small business” means any business entity physically located in the State that employed 25 or less full-time employees as of December 31, 2019, and is in good standing as of January 1, 2024, with all federal and state tax returns filed prior to the effective date of this act unless an extension for the filing of such return has been granted and not expired.