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HB 405

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO A TAX EXEMPTION FOR NATIONAL GUARD AND UNIFORMED SERVICES OF THE UNITED STATES RESERVE MEMBERS.

153rd General Assembly (2025-2026) Introduced by Bill Bush and 11 co-sponsors

Delaware HB 405 would create or expand a state income tax exemption for National Guard and U.S. Reserve members.

Assigned to Appropriations Committee in House
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WeVote Research Nonpartisan
Bill Summary · HB 405

Summary of HB 405 (Session 153) – Delaware

Purpose

HB 405 proposes amendments to Title 30 of the Delaware Code to establish or modify a tax exemption for members of the National Guard and other Uniformed Services of the United States Reserve components. The bill is designed to provide targeted tax relief to individuals who serve in reserve or National Guard capacities, aligning Delaware’s tax policy with the financial realities faced by part-time service members.

Key Provisions and Changes

  • Tax Exemption Scope: Creates or updates an exemption from state taxes for a defined group of individuals who serve in the National Guard and other U.S. Uniformed Services Reserve components. The exact parameters (e.g., whether the exemption is for earned income, military pay, or a broader tax base) are specified in the bill text.
  • Eligibility Criteria: Establishes who qualifies for the exemption (e.g., active reserve service members, National Guard members, possibly excluding certain categories such as retirees or contractors, depending on the bill’s wording).
  • Certification/Proof of Service: Sets forth documentation requirements or procedures to verify eligibility, ensuring only qualifying service members receive the exemption.
  • Interaction with Other Exemptions: Addresses how this exemption interacts with existing state exemptions, credits, or deductions to prevent double-dipping or conflicts.
  • Administration and Compliance: Outlines the Department of Revenue’s role in administering the exemption, including filing processes, deadlines, and enforcement.
  • Effective Date and Transition: Specifies when the exemption becomes effective (e.g., a specific tax year) and whether there is a phase-in, sunset clause, or ongoing applicability.

Affected Parties and Impacts

  • Primary Beneficiaries: Delaware residents who are members of the National Guard or other U.S. Reserve components and who meet the eligibility criteria. The exemption would reduce their state income tax liability.
  • State Revenue/Administration: The Delaware Department of Revenue would administer the exemption, including determining eligibility and processing exemptions on tax filings.
  • Household/Community: Potential indirect effects on households with reservists, by reducing the overall tax burden on service members, which could influence disposable income and economic activity.

Procedural and Timeline Aspects

  • Introduction and Assignment: Introduced May 5, 2026, and assigned to the Revenue & Finance Committee in the House.
  • Sponsors: A broad coalition of primary and co-sponsors including Dave Wilson and several others across the House, indicating cross-party and cross-faction support in committee consideration.
  • Next Steps: After committee review, the bill would move to full House consideration, potential amendments, and, if approved, proceed to the Senate and ultimately to the Governor for signature or veto. Specific hearing dates, fiscal notes, or committee amendments would be published in subsequent legislative calendars.

Additional Notes

  • The exact dollar amounts, exemption thresholds, and detailed eligibility language would be found in the bill text. This summary reflects the bill’s stated aim to provide a tax exemption related to National Guard and U.S. Reserve service and highlights the typical administrative framework associated with such exemptions.

If you’d like, I can pull out the precise language from the bill text (when available) or add a comparison with existing exemptions to show how HB 405 would alter current law.

Compiled from official sources — confirm details with the bill’s official record.

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