CHAPTER 122

FORMERLY

HOUSE BILL NO. 196

AN ACT TO AMEND CHAPTER 11, TITLE 30, DELAWARE CODE, RELATING TO THE DEFINITION OF RESIDENT INDIVIDUAL FOR PERSONAL INCOME TAX PURPOSES, AND TO CLARIFY THE DEDUCTION FOR TAXES PAID TO A FOREIGN COUNTRY.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend Section 1103, Chapter 11, Title 30, Delaware Code, by striking said section in its entirety and substituting in lieu thereof a new Section 1103 to read as follows:

"Section 1103. Resident individual Defined.

A resident individual of this State means an individual:

(1) Who is domiciled in this State to the extent of the period of such domicile, provided however, an individual who (a) is present in a foreign country or countries for at least 495 full days in any consecutive 18 month period, and (b) during such period of 18 consecutive months is not present in this State for more than 45 days, and does not maintain a permanent place of abode in this State at which his spouse, children or parents are present for more than 45 days, and (c) is not an employee of the United States, Rs agencies or instrumentalities (including members of the Armed Forces) shall not be considered a resident of this State during such period; or

(2) Who maintains a place of abode in this State and spends in the aggregate more than 183 days of the taxable year in this State.

Section 2. Amend subsection (a) of Section 1109, Chapter 11, Title 30, Delaware Code, by striking the words "or, if the standard deduction was claimed on his Federal income tax return, the sum of the itemized deductions to which he would have been entitled had he itemized his deductions, reduced by:" as the same appear therein and substituting in lieu thereof the following words:

"or, if he does not itemize deductions or elects the credit for foreign taxes paid on his Federal return, the sum of the itemized deductions to which he would have been entitled had he itemized his deductions (including the deduction for foreign taxes paid) on his Federal return, reduced by:"

Section 3. This Act shall become effective immediately upon its enactment into law and apply to tax years beginning on or after January 1, 1981.

Approved July 9, 1981.