Of the 41 states with a state income tax, 27 states fully exempt military retirement pay from state income taxes and 12 states partially exempt military retirement pay. In 2022, Delaware increased the pension exclusion for military pensioners under 60 to $12,500, and in 2024, Delaware expanded the definition of a United States military pension to include a pension received for an individual’s service in the commissioned corps of the National Oceanic and Atmospheric Administration and the commissioned corps of the Public Health Service and clarified that the armed forces of the United States includes the Space Force and Coast Guard. This Act phases in, over 3 years, an increased exemption for military pensions from state income taxation, regardless of age, which is currently $12,500, so that in taxable years beginning on or after January 1, 2029, the exemption will be $25,000 for all military pensioners.
In 2025, the General Assembly passed House Bill No. 242 (now found at Chapter 135, Volume 85 of the Laws of Delaware), allowing school districts located entirely in New Castle County to use different tax rates for residential and non-residential properties. This Act amends the Delaware Code to continue the authority for non-vocational technical school districts in New Castle County to utilize a residential and non-residential tax rate for school tax purposes. Such a split rate may be established or adjusted in the year after a general reassessment or as part of a referendum. The rate must be uniform for each class of property. Under this Act, the non-residential rate must be at least equal to the residential rate and may be no more than 1.85 times the residential rate. For purposes of the split tax rate, a school district must follow the classifications of the county in which the district is located. Under the transition provisions of this Act, a district that initially established split tax rates under the authority of House Bill No. 242, may continue to use those split rates at the same or a lower ratio between residential and non-residential tax rates established in the 2025-2026 tax year. But if a district’s non-residential tax rate for the 2025-2026 tax year was more than 1.85 times the residential tax rate, it must adjust its rates to meet the 1.85 maximum ratio permitted under this Act. The New Castle County Vocational Technical District may not continue the use of different tax rates past the 2025-2026 tax year. The Act also changes the amount a school district must add to its tax rate to account for delinquencies and late payments to “up to 10%” rather than requiring that a school district must add exactly 10% to its tax rate for this purpose. This Act also makes technical corrections to conform this chapter of the Delaware Code to the Delaware Legislative Drafting Manual and strikes references to the City of Wilmington School District, which no longer exists. It also revises § 1913 of Title 14 to reflect current practice. It strikes an outdated requirement in § 1918 of Title 14 that the school districts deliver a copy of the assessment list to the County along with their tax warrant. This is inconsistent with the role of the school districts and with current practice.
This Act provides supplementary appropriations to certain Grants-in-Aid recipients for Fiscal Year 2027. Section 1 – Government Units and Senior Centers $40,534,269 Section 2 – One-Times and Community Agencies $42,346,157 Section 3 – Fire Companies and Public Service Ambulance Companies $15,541,500 Section 4 – Veterans Organizations $985,125 GRAND TOTAL $99,407,051
HB 500 authorizes the State of Delaware and its transportation authorities to issue bonds and allocate funds for capital projects in fiscal year 2027. The bill allows the state to sell general obligation bonds and the Delaware Transportation Authority to sell revenue bonds to finance infrastructure improvements. It also sets specific rules for how these funds can be spent and reprograms existing money within the state's transportation trust fund. This legislation directly impacts the state's budget and the funding available for transportation construction and upgrades.
This Act adds a new paragraph (c) to § 137 of Title 16, which provides that the Attorney General shall use the Delaware Health Fund to enforce and litigate the Tobacco Master Settlement Agreement and the 2018 Non-Participating Manufacturers (NPM) Adjustment Settlement Agreement (NPMSA) between the State and the tobacco manufacturers pursuant to 16 Del. C. § 137 and 29 Del. C. chs. 60C and D. This Act also adds a new paragraph (i) to § 137, which provides that the Department of Health and Social Services, in consultation with the Division of Public Health, shall administer a competitive grant program to make recommendations for the expenditure of money appropriated from the Delaware Health Fund in accordance with the procedure set forth in paragraph (i) to make recommendations for the award of grants to private organizations, consistent with the purposes and criteria in § 137. This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.
This Act creates a film production tax credit. It requires companies to obtain, at their own expense, an independent audit certifying eligible expenditures. The audit must be submitted to the Division of Small Business for approval and allocation of credits. The credit is nonrefundable, transferable, and may be carried forward for up to 5 years. The credit may be applied against personal income tax, corporate income tax, bank franchise tax, and insurance premiums tax. All credit transfers must be approved by the Division of Small Business. This Act further authorizes necessary data sharing among agencies. Applicants and transferees consent to disclosure of credit amounts by virtue of applying or receiving a transfer. This Act also grants regulatory authority to the Division of Small Business and the Secretary of State to administer the annual credit cap; prioritize and manage awards; and issue reports relating to awards and utilization with input from relevant state agencies. The Division of Small Business may create alternative audit procedures for small businesses where a full audit would be prohibitively expensive. This Act sunsets on June 30, 2031, and no applications may be submitted after that date.
This Substitute for House Bill No. 376 removes provisions in the existing Town of Millville Charter that have been preempted or otherwise regulated by State law and makes technical changes. The original Bill reorganizes the Town Charter’s sections into corresponding articles, adds a preamble, and modernizes wording. Also, the Bill removes sections related to a Town-only assessment process, given the Town’s use of county assessments and adds a property tax cap of 3% of the total assessed value in the Town. The municipal election process is amended to include an ultimate tie-breaking mechanism.
This Act modernizes Delaware’s emergency communications infrastructure by transitioning the State’s legacy Enhanced 911 (E911) system to a Next Generation 911 (NG911) system and updating the funding structure needed to support a statewide emergency communications network. Delaware’s current E911 system is funded through a monthly surcharge of $0.60 per telephone line, which has remained unchanged since 2001. This Act also authorizes periodic adjustments or scheduled increases in the surcharge to account for inflation, technological upgrades, and the growing operational costs associated with maintaining a modern emergency communications system. The transition to NG911 will allow Delaware’s public safety answering points (PSAPs) to support modern communications technologies, including text-to-911, multimedia communications, improved geolocation capabilities, and enhanced data sharing with first responders. These capabilities require significant upgrades to network infrastructure, cybersecurity protections, geographic information systems (GIS), and redundancy to ensure reliability during emergencies. Revenue generated by the updated surcharge structure will be deposited into the 911 System Fund and used for costs associated with planning, deploying, operating, and maintaining the statewide NG911 system. Eligible expenditures include network infrastructure, call handling equipment, software systems, cybersecurity protections, GIS data management, training of emergency communications personnel, and other costs necessary to operate a modern statewide emergency communications system. By establishing a sustainable funding mechanism and enabling the transition to NG911, this Act ensures that Delaware’s emergency communications system can meet current and future public safety needs, improve response times, and provide residents with access to modern emergency communication capabilities. Finally, this Act makes technical changes to existing statutory language to conform with the Delaware Legislative Drafting Manual.
This bill authorizes a one-time funding allocation of approximately $146.2 million to the Office of Management and Budget for the fiscal year ending June 30, 2027. The money is designated to cover specific, temporary expenses identified by that agency. The legislation has been approved by both the Senate and the House of Representatives and is now ready for final passage.
This bill allocates state funds to cover government operations for the fiscal year ending June 30, 2027, directly affecting all state agencies and departments. It establishes specific rules and limits on how these funds can be spent and updates related state laws to reflect these financial constraints. The legislation has been passed by both the Senate and the House of Representatives, moving it closer to becoming law.
