AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO EXCLUSION OF MILITARY PENSIONS FROM TAXABLE INCOME.

This bill clarifies the definition of a "United States military pension" for Delaware state tax purposes, ensuring that income from service in the Army, Navy, Air Force, Marine Corps, Space Force, Coast Guard, NOAA, Public Health Service, or National Guard is treated correctly. The change specifically affects how taxpayers under age 60 calculate their tax-exempt income limits starting in the 2022 tax year, creating a distinct category for military pensions separate from other employer or state pensions. By explicitly listing the branches of service included, the legislation provides clearer guidance to military retirees and their families on which income qualifies for exclusion from taxable earnings.