§ 1117 — Earned income tax credit

(a) (1) For any tax year beginning before January 1, 2022, an individual who is a resident of this State may receive a nonrefundable credit against the individual’s tax otherwise due under this chapter in the amount of 20% of the corresponding federal earned income credit allowed under § 32 or successor provision of the Internal Revenue Code (26 U.S.C. § 32).

(2) For any tax year beginning on or after January 1, 2022, an individual who is a resident of this State may receive a credit against the individual’s tax under this chapter in an amount based on a percentage of the corresponding federal earned income credit allowed under § 32 or successor provision of the Internal Revenue Code (26 U.S.C. § 32). The individual may claim either of the following amounts:

a. 20% of the corresponding federal earned income tax credit, not to exceed the tax otherwise due under this chapter.

b. 4.5% of the corresponding federal earned income tax credit, of which the amount that exceeds the tax otherwise due under this chapter is refundable.

(b) In the case of spouses who file a joint federal return but who elect to determine their Delaware taxes separately, the credit allowed under subsection (a) of this section may only be used by the spouse with the greater tax otherwise due, computed without regard to this credit.

(c) The credit allowed under paragraph (a)(1) of this section may not exceed the tax otherwise due under this chapter.

Legislative History

75 Del. Laws, c. 221, § 1 ; 83 Del. Laws, c. 118, §§ 1, 2