DELAWARE -The Delaware General Assembly is reviewing a four-bill package that its supporters claim is designed to help low- and moderate-income people in Delaware who are struggling with rising prices and economic uncertainty.
“Working families and those seeking employment need relief,” said State Rep. Lyndon Yearick, a Republican representing Camden, Wyoming and Woodside. “Food and energy prices continue to rise, hiring has slowed, Delaware currently has the seventh-highest unemployment rate in the nation, and some economists warn we could face a recession by the end of the year.”
The proposed “Delaware Life Affordability Package” includes targeted tax credits and breaks for working families, retirees, and homebuyers.
According to the Bureau of Economic Analysis, the average personal consumption expenditures per person in Delaware total $57,672 per year. Yearick said his proposals are aimed at easing that burden for those with the least financial flexibility.
“If enacted, these bills would improve the financial outlook for tens of thousands of Delawareans and help give our most challenged residents a better chance to make ends meet,” Yearick said.
The package includes the following bills:
Earned Income Tax Credit
House Substitute 1 for House Bill 99 would make Delaware’s Earned Income Tax Credit fully refundable at 10 percent of the federal credit, up to $805. Any amount remaining after paying off state taxes would be refunded directly to the taxpayer. The change is modeled after a similar provision in Pennsylvania.
More than 60,000 Delawareans currently benefit from the credit. Yearick said this proposal would allow eligible workers to collectively receive an additional $10 million annually.
Doubling Retirement Income Exclusion
House Bill 108, introduced in April, would double the amount of retirement income that Delawareans age 60 and older can exempt from state income tax, increasing the threshold from $12,500 to $25,000. Yearick plans to amend the bill to limit eligibility to those earning less than $30,000 individually or $60,000 as a household.
Child Care Credit Expansion
A forthcoming bill would increase the state’s child care tax credit for families earning under $60,000 annually. The credit would rise from 50% to 100% of the federal Child and Dependent Care Tax Credit—up to $3,000 per child for a maximum of two children. Families with higher incomes would still receive the existing 50 percent state match.
Realty Tax Relief for Affordable Housing
Delaware’s percent realty transfer tax is one of the highest in the U.S. A new bill would eliminate the state’s 2.5 percent portion of the tax for home purchases under $350,000. For homes sold between $350,000 and $500,000, the total tax would gradually drop to 3% by 2030.
Local government revenues would not be affected, as their share of the tax would remain unchanged.
While Yearick acknowledged the bills would reduce state revenue, he said the legislation is designed to target those most in need.
“Our state should focus on helping those who need it most, when they need it most,” he said. “While some may worry about reduced state revenue, they should also consider the long-term cost of increased public aid.”
All four bills are expected to be discussed during the 2026 legislative session.