DE HB16

Modifies Delaware's Earned Income Tax Credit (EITC) to allow recipients to choose between two options: a non-refundable credit of up to 20% of the federal EITC or a refundable credit of up to 4.5% of the federal EITC.

The 20% non-refundable credit cannot exceed the taxpayer's tax otherwise due under Delaware law.

The 4.5% refundable credit allows any amount exceeding the taxpayer's Delaware tax liability to be refunded to the taxpayer.

For spouses filing jointly on federal returns but separately for Delaware, only the spouse with greater tax liability may claim the credit.

Effective date is contingent upon the Division of Revenue implementing the personal income tax release of the Integrated Revenue Administration System, with the Secretary of Finance providing written notice to the Registrar of Regulations.