A bill signed into law Monday (8/9) provides more flexibility for using the Delaware Earned Income Tax Credit (EITC), a move that will help Delawareans with modest incomes.
The Earned Income Tax Credit (EITC) helps low to moderate-income workers get a tax break. Qualifying citizens can use the credit to reduce the taxes they owe or possibly increase the size of a refund.
The legislation (House Bill 16
) cleared the General Assembly earlier this year without a dissenting vote. The bipartisan measure modifies the tax credit to allow recipients to choose between two different versions and select the option that is the most beneficial.
The implementation of the change will be slightly delayed to ensure that it can be properly integrated into the Division of Revenue’s modernized administration system, which is under development.
“I was proud to be a co-prime sponsor on this bipartisan legislation that encourages and rewards the working poor,” said State Rep. Lyndon Yearick (R-Camden-Wyoming).
Rep. Yearick has been an outspoken proponent of enacting targeted tax cuts at a time when the state is enjoying record revenue surpluses. He is the prime sponsor of two additional measures, both of which are pending action in the General Assembly. The first, House Bill 172
, would temporarily eliminate the state’s portion of the realty transfer tax for certain first-time home buyers. The second bill, House Bill 158
, seeks to create a $500 tax credit for low-income Delawareans.