CHAPTER 202

FORMERLY

SENATE BILL NO. 18

AS AMENDED BY HOUSE AMENDMENT NO. 1

AN ACT TO AMEND SUBCHAPTER II, TITLE 30 OF THE DELAWARE CODE RELATING TO CHILD CARE. DEDUCTION FOR PERSONAL INCOME TAX PURPOSES OF RESIDENT INDIVIDUALS.

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

Section 1. Amend Subchapter II, Title 30, Delaware Code by adding thereto a new section designated as §1114 to read as follows:

"§1114. Child Care and Dependent Care Expense Credit

(a) A resident individual shall be entitled to a credit against that individual's tax otherwise due under this chapter in the amount of twenty five percent (25%) of the child and dependent care expense credit allowable for federal income tax purposes for the same tax year. In no event shall the allowable credit under this subsection exceed the tax otherwise due under this chapter.

(b) In the case of a husband and wife who file a joint federal return but who elect to determine their Delaware taxes separately, the credit allowed pursuant to this subsection may only be applied against the tax imposed on the spouse with the lower taxable income, computed without regard to such credit, and shall not exceed such tax."

Section 2. This Act shall be applied to all tax years beginning on or after January 1, 1987.

Approved September 5, 1985