Delaware

EARNED INCOME TAX CREDIT (EITC)

Rate: Refundable, 4.5% of the federal credit. Nonrefundable, 20% of the federal credit.1

Eligibility Requirements: All Delaware taxpayers who qualify for the federal credit are automatically eligible.

Latest Legislative Action: In 2023, lawmakers proposed HB89, which would increase the refundable state EITC from 4.5% to 7.5% of the federal rate.

Notes:

  • In 2020, SB80 created a refundable state EITC valued at 4.5% of the federal credit, alongside the existing nonrefundable 20% state EITC.
  • During the 2016 legislative session, lawmakers considered a bill to make the Delaware EITC fully refundable, but decrease the rate to 6% of the federal credit for 2017. The rate would have then increased 1% per year until it reached 15% in 2026.
  • The Delaware EITC was enacted in 2005 and took effect starting in the 2006 tax year.2

CHILD TAX CREDIT (CTC)

State CTC: Delaware does not currently offer a state-level CTC.

CHILD AND DEPENDENT CARE TAX CREDIT (CDCTC)

Rate (Non-Refundable): 50% of federal credit1

Eligibility Requirements: All Delaware taxpayers who qualify for the federal credit are automatically eligible.

Notes: Filers who file joint federal returns but separate Delaware returns may only apply the credit against the taxes of the spouse with the lower taxable income.3

Source:

  1. 2015 Resident Individual Income Tax Return Booklet, Delaware Division of Revenue Services
  2. SB 230, 143rd Delaware General Assembly
  3. Delaware Code 30 (11) (II) §1114

For More State Information

Nick Johnson
Center on Budget and Policy Priorities

www.cbpp.org
(202) 408-1080
johnson@cbpp.org