DELAWARE -Sen. Bryant Richardson (R -Seaford) and Rep. Bryan Shupe (R -Milford) introduced legislation that would create a Delaware income tax credit for overtime pay earned by workers across the state.
Senate Bill 299 would establish a personal income tax credit of up to $15,000 on overtime income earned under the federal Fair Labor Standards Act for hours worked beyond 40 in a workweek.
Under the proposal, the credit would begin phasing out for individuals earning more than $125,000 annually and for joint filers earning more than $250,000. The credit would fully phase out at higher income levels.
According to supporters of the legislation, the bill is aimed at helping Delawareans in professions where overtime work is common, including health care workers, first responders, tradesmen, manufacturing employees and transportation workers.
“Too many hardworking Delawareans are struggling with rising costs while sacrificing additional time away from their families through overtime work,” Richardson, a Republican from Seaford, said. “This legislation recognizes men and women who are willing to put in those extra hours to keep our economy moving and provide for their households. If someone is working beyond a standard workweek, they deserve to keep more of what they earn.”
“This legislation puts more money in the pockets of the people who work the hourly jobs that keep our society running — nurses pulling double shifts, factory workers staying late, and every hourly wage-earner sacrificing time with family to bring home a few extra dollars,” Shupe said. “By creating a state tax credit for overtime earnings, we’re recognizing that hard work should be rewarded, not penalized.”
SB 299 has been assigned to the Senate Elections & Government Affairs Committee for consideration.
