The General Assembly is back in Dover Thursday for another special session, this one to address a looming revenue shortfall.
Gov. Matt Meyer called for the session last week as the state grappled with the loss of $400 million thanks to corporate law changes in the One Big Beautiful Bill Act. The House Administration Committee advanced a bill Friday to decouple state and federal tax law.
As it stands, Delaware’s tax policy mimics federal code. If the General Assembly passes the decoupling bill, the tax cuts causing the revenue shortfall would be reversed.
State Rep. Kerri Evelyn Harris and State Sen. Bryan Townsend filed a bill this week to undo the losses.
“In short, this bill keeps Delaware's tax policy stable and predictable for our businesses and taxpayers, while giving the General Assembly time to review and respond thoughtfully to changes in federal law,” Harris said.
Gov. Matt Meyer has voiced his support to decouple from federal tax policy.
But GOP State Rep. Daniel Short said this conversation should’ve happened in February, when state lawmakers were in session and already knew they could face a deficit, even before the federal changes.
“They're actually blaming the so-called One Big Beautiful Bill out of Washington,” Short said. “But we've known about that bill since July… So I don't get the urgency of us having to go into a special session to do what we're supposedly going to do is the decoupling of our tax initiatives that have always matched up with the federal government.”
Short added he doesn’t yet know how he’s going to vote and plans to consult experts before he makes his decision.
“We're fortunate that here in Delaware, state leaders are able to move swiftly and cohesively," Sen. Bryan Townsend said in a press release.
The bill needs a three-fifths majority in both chambers to pass. If approved by both chambers Thursday, the proposed decoupling bill would go into effect January 2026.
