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Politics & Government

Gov. Carney signs Earned Income Tax Credit bill

carney_eitc_bill_sign.jpg
Roman Battaglia
/
Delaware Public Media

Delawareans can now choose the most beneficial Earned Income Tax Credit to be applied against their personal income taxes.

  Gov. John Carney signed House Bill 16 Tuesday, giving Earned Income Tax Credit recipients options.

They can choose a non-refundable credit of up to 20% of the value of the corresponding federal Earned Income Tax Credit.

Or they could choose a refundable EITC credit of up to 4.5% of the value of the corresponding federal EITC.

"Helping Delaware families most in need through enhancing a program that's been shown to be one of the most effective at enabling low income working families to climb out of poverty," said  State Rep. Paul Baumbach (D-Newark), the bill’s main sponsor. "More than 40,000 low and middle-income Delaware families will see a benefit from this change. Nationally the Federal EITC's lifted about five-point-six million people out of poverty in 2018 including three million children."

Baumbach expects over 40,000 low and middle income Delaware families to benefit from the change.

"Tens of thousands of Delaware children will similarly benefit from this new state law," said Baumbach (D-Newark) "It's another important step toward the economic empowerment for close to 100,000 Delawareans in hard working households."

Carney notes this law received so much bipartisan support because it helps people in need, and it rewards those who go to work.

The change to Delaware EITC will become effective in the tax year when the state implements its modernized Integrated Revenue Administration System to ensure the change goes smoothly.  That system is under development. 

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