CHAPTER 362

AN ACT TO AMEND CHAPTER 11, TITLE 30, DELAWARE CODE, SO AS TO ALLOW A DEDUCTION OF EXPENSES FOR THE CARE OF CERTAIN DEPENDENTS FOR THE PURPOSE OF ENABLING THE TAXABLE TO BE GAINFULLY EMPLOYED.

Be it enacted by the General Assembly of the State of Delaware:

Section 1. Section 1118 of Chapter 11, Title 30, Delaware Code, is amended by adding after subsection (18) the following new subsection:

(20) (a) Expenses paid during the income year by a taxable who is a woman or widower, or is a husband whose wife is incapacitated or is institutionalized, for the care of one or more dependents, but only if such care is for the purpose of enabling the taxable to be gainfully employed;

(b) (1) The deduction under paragraph (a) shall be limited to $600 for any income year, except that the deduction shall be increased (to an amount not above $900) by the expenses incurred by the taxable during any income year during which the taxable had 2 or more dependents.

(2) In the case of a woman who is married and in the case of a husband whose wife is incapacitated, the deduction under paragraph (a) shall be reduced by the amount (if any) by which the combined adjusted gross income (as defined in section 1101) of the taxable and spouse, whether or not both are taxable under this Chapter, exceeds $6,000. This subparagraph shall not apply, in the case of a woman who is married, to expenses incurred while her husband is incapable of self-support because mentally or physically defective, or, in the case of a husband whose wife is incapacitated, to expenses incurred while his wife is institutionalized if such institutionalization is for a period of at least 90 consecutive days (whether or not within one income year) or a shorter period if terminated by her death.

(3) Paragraph (a) shall not apply to any amount paid to an individual with respect to whom the taxable or spouse is allowed, or would be allowed if both were taxable under this Chapter, for the income year a deduction under section 1117 (relating to deductions for personal exemptions).

(4) In the case of a husband whose wife is incapacitated or institutionalized, the deduction under paragraph (a) shall be allowed only for expenses incurred while the wife was incapacitated or institutionalized for a period of at least 90 consecutive days (whether or not within one income year) or a shorter period if terminated by her death;

(c) For purposes of this subsection--

(1) The term "dependent" means a person with respect to whom the taxable is entitled to an exemption under section 1117

(A) who has not attained the age of 13 years and who is a son, stepson, daughter or stepdaughter of the taxable; or

(B) who is physically or mentally incapable of caring for himself.

(2) The term "widower" includes an unmarried individual who is legally separated from his spouse under a decree of divorce or of separate maintenance;

(3) A wife shall be considered "incapacitated" only while she is incapable of caring for herself because mentally or physically defective, or while she is institutionalized;

(4) A wife shall be considered "institutionalized" only while she is, for the purpose of receiving medical care or treatment, an inpatient, resident or inmate of a public or private hospital, sanitarium or other similar institution;

(5) A woman shall not be considered as married if--

(C) she is legally separated from her spouse under a decree of divorce or of separate maintenance; or

(D) she has been deserted by her spouse, does not know his whereabouts (and has not known his whereabouts at any time during the income year), and has applied to a court of competent jurisdiction for appropriate process to compel him to pay support or otherwise comply with the law or a judicial order.

Section 2. This Act shall take effect on January 1, 1969.

Approved June 28, 1968.