Bill Text: DE HB448 | 2023-2024 | 152nd General Assembly | Draft

Delaware House Bill 448

Draft

Bill Title: An Act Amending Title 30 Of The Delaware Code Relating To Income Tax.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2024-06-18 - Introduced and Assigned to Revenue & Finance Committee in House [HB448 Detail]

Download: Delaware-2023-HB448-Draft.html

SPONSOR:

Rep. Dorsey Walker & Sen. Hoffner

HOUSE OF REPRESENTATIVES

152nd GENERAL ASSEMBLY

HOUSE BILL NO. 448

AN ACT AMENDING TITLE 30 OF THE DELAWARE CODE RELATING TO INCOME TAX.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend § 1106, Title 30 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 1106. Modifications [For application of this section, see 83 Del. Laws, c. 338, §?2].

(b) Subtractions. — There shall be subtracted from federal adjusted gross income:

(3) a. For taxable years beginning before January 1, 2022:

1. Amounts received, not to exceed $2,000, by persons under age 60 as pensions from employers, the United States, this State, or any subdivision of this State; or

2. Amounts received, not to exceed $12,500, by persons age 60 or older as pensions from employers, the United States, this State, or any subdivision of this State, or as eligible retirement income.

b. For taxable years beginning on or after January 1, 2022:

1. For persons under age 60, the greater of:

A. Amounts received, not to exceed $2,000, as pensions from employers, the United States, this State, or any subdivision of this State; or State.

B. Amounts received, not to exceed $12,500, as a United States military pension.

2. For persons age 60 or older, amounts received, not to exceed $12,500, as pensions from employers, the United States, this State, or any subdivision of this State, or as eligible retirement income.

c. For taxable years beginning on or after January 1, 2025:

1. For persons under age 60, the greater of:

A. Amounts received, not to exceed $2,000, as pensions from employers, the United States, this State or any subdivision of this State.

B. Amounts received, not to exceed $12,500, as a United States military pension.

2. For persons age 60 or older, amounts received as pensions from employers, the United States, this State, or any subdivision of this State, or as eligible retirement income.

c. d. For the purposes of this paragraph (b)(3), “eligible retirement income” includes distributions received from qualified retirement plans defined in § 4974 of the federal Internal Revenue Code (“IRC”) (26 U.S.C. § 4974) or a successor provision, cash or deferred arrangements described in IRC § 401(k) (26 U.S.C. § 401(k)) or a successor provision, government deferred compensation plans described in IRC § 457 (26 U.S.C. § 457) or a successor provision, dividends, capital gains, interest, and rental income from real property less deductible rental expenses. For purposes of this paragraph (b)(3)c., (b)(3)d., eligible retirement income received by spouses as joint tenants with right of survivorship or as tenants by the entirety is deemed to have been received ½ by each;

(4) Social Security benefits paid by the United States and all payments received under the Railroad Retirement Act of 1974 [45 U.S.C. §§ 231-231[v]] to the extent included in federal adjusted gross income;

SYNOPSIS

This bill allows Delaware residents age 60 and older to deduct their full pensions or other qualified retirement income from State taxable income. This bill contains technical corrections to conform existing law to the standards of the Delaware Legislature Drafting Manual.