CHAPTER 117

FORMERLY

HOUSE BILL NO. 377

AS AMENDED BY

HOUSE AMENDMENT NO. 1

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE WITH REGARD TO PERSONAL INCOME TAX.

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

Section 1. Amend § 1102(a), Title 30 of the Delaware Code by adding to said subsection a new paragraph (6) to read as follows:

"(6) For taxable years beginning after December 31, 1995, the amount of tax shall be determined as follows: 3.2% of taxable income in excess of $2,000 but not in excess of $5,000; 5.0% of taxable income in excess of $5,000 but not in excess of $10,000; 6.0% of taxable income in excess of $10,000 but hot in excess of $20,000; 6.35% of taxable income in excess of $20,000 but not in excess of $25,000; 6.65% of taxable income in excess of $25,000 but not in excess of $30,000; 7.1% of taxable income in excess of $30,000."

Section 2. Further amend § 1102(a), Title 30 of the Delaware Code by inserting immediately after the date "December 31, 1987," as it appears in paragraph (5) of said subsection the phrase: "and before January 1, 1996,".

Section 3. Amend § 534(h), Title 30 of the Delaware Code by striking said subsection in its entirety.

Section 4. Amend § 1109, Title 30 of the Delaware Code by adding to said section a new subsection (c) to read as follows:

"(c) For purposes of subsection (a) of this section, the amount of itemized deductions representing income taxes imposed by: (i) this State, or (ii) another state of the United States or a political subdivision thereof or the District of Columbia on income derived from sources therein if a resident elected to take such amount as a credit in accordance with § 1111(a) of this title shall be deemed to equal the amount of such taxes reduced by the amount of such taxes multiplied by the percentage determined under § 68(a) of the Internal Revenue Code or successor provision thereof."

Section 5. It is declared to be the legislative intent that, with regard to Sections 1 and 2 of this Act, if any section, subsection, sentence, clause, or provision of this Act is held invalid, the remainder of this Act shall be invalid.

Section 6. Sections 1, 2, and 4 of this Act shall be effective for tax years beginning after December 31, 1995. Section 3 of this Act shall be effective for tax years beginning after December 3 I, 1994.

Approved July 1, 1995