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HB 284

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO THE CHILD CARE AND DEPENDENT CARE EXPENSE TAX CREDIT.

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

HB 284 changes how Delaware’s Child Care and Dependent Care Tax Credit is calculated and administered to better assist taxpayers with qualifying expenses.

Assigned to Appropriations Committee in House
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WeVote Research Nonpartisan
Bill Summary · HB 284

Summary of HB 284 (Session 153, Delaware)

Title

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO THE CHILD CARE AND DEPENDENT CARE EXPENSE TAX CREDIT.

Purpose and intent

HB 284 proposes changes to Delaware’s Child Care and Dependent Care Expense Tax Credit. The bill aims to modify how the credit is calculated, administered, or otherwise applied to individual tax filers in order to encourage or support taxpayers with child care and dependent care expenses. The action history indicates the bill was adopted in lieu of the original and referred to the Revenue & Finance Committee in the House, suggesting the changes are technical or revenue-focused rather than creating a new broad program.

Key provisions and changes (as typically associated with this subject)

While the exact text of HB 284 is not provided here, a bill amending Title 30 to adjust the Child Care and Dependent Care Expense Tax Credit typically includes one or more of the following elements. If you have the bill’s language, compare to the list below to identify precise changes:

  • Credit amount and calculation:

    • Adjustments to the credit rate (e.g., percentage of eligible expenses).
    • Changes to the maximum credit allowable per taxpayer.
    • Potential indexing of credit limits to inflation or to a statutory rate.

  • Eligible expenses:

    • Clarifications of what constitutes qualifying child care or dependent care expenses.
    • Inclusion or exclusion of certain costs (e.g., after-school programs, preschool, nanny services, day camps).

  • Eligibility and filing rules:

    • Eligibility criteria (e.g., income thresholds, residency requirements, or taxpayer filing status).
    • Income phaseouts or brackets affecting high- versus low-income filers.

  • Coordination with other benefits:

    • Provisions addressing interactions with the federal Child and Dependent Care Tax Credit (CDCTC) or other state/municipal credits.
    • Rules to prevent double-dipping or to allocate credit amounts when both spouses file separately.

  • Administration and compliance:

    • Requirements for documentation, receipts, or third-party verification.
    • Procedures for claiming the credit on state tax returns (e.g., form changes, line item updates).
    • Penalties or remedies for misuse or fraudulent claims.

  • Refundability or carryover:

    • Whether the credit is refundable, partially refundable, or nonrefundable.
    • Provisions for carryover of unused credit to future tax years.

  • Effective date and transitional provisions:

    • Start date for the new or amended credit.
    • Transitional rules for taxpayers who incurred expenses prior to enactment.

Who would be affected

  • Taxpayers who incur child care or dependent care expenses: Primary impact is on Delaware residents who claim the state credit on their personal income tax returns.
  • Low- to middle-income families: Depending on the specific credit structure, the bill may broaden access or provide greater relief to lower income tiers.
  • Tax filing and payroll operations: If the credit interacts with payroll withholdings or requires updated forms, state agencies and tax preparers would implement changes.
  • State revenue and budgeting: The credit affects state tax revenue projections and may influence annual revenue forecasts within the Revenue & Finance portfolio.

Procedural and timeline aspects

  • Current status: Adopted in lieu of the original bill and assigned to the Revenue & Finance Committee in the Delaware House (as of 2026-04-30).
  • Next steps: Committee review by the Revenue & Finance Committee, potential committee amendments, and then floor consideration in the House. If approved, bill moves to the Senate for an identical process.
  • Effective date: The bill will specify an effective date for the amended credit (e.g., for tax years beginning after a certain date or for taxable years starting in a specified year). Transitional rules may be provided for claims in pending or recently incurred expenses.

Notes

  • Specific dollar amounts, percentages, income thresholds, and dates are not included in the provided summary. To fully understand the impact, review the bill’s text for:
    • The exact calculation method of the credit.
    • Eligibility criteria and any phaseouts.
    • Documentation requirements and filing changes.
    • The estimated fiscal impact on state revenue.

If you can share the bill’s text or section-by-section language, I can provide a precise, line-by-line summary of all provisions.

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

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