CHAPTER 131

FORMERLY

SENATE BILL NO 219

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

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

Section 1. Amend §1106(b), Title 30, Delaware Code, by designating paragraph (3) of said subsection as subdivision (A) of said paragraph and adding to said paragraph a new subdivision (B) to read as follows:

"(B) For taxable years beginning on or after January 1, 1997, (i) amounts not to exceed $2,000 received by persons under age 60 as pensions from employers, the United States, the State or any subdivision, or (ii) amounts not to exceed $3,000 received by persons age 60 or older as pensions from employers, the United States, the State or any subdivision or as eligible retirement income. For the purposes of this subdivision, 'eligible retirement income' shall include distributions received from qualified retirement plans defined in §4974 of the federal Internal Revenue Code (`IRC') or a successor provision, cash or deferred arrangements described in IRC §401(k) or a successor provision, government deferred compensation plans described in IRC §457 or a successor provision, dividends, interest, and rental income from real property less deductible rental expenses. For purposes of this subdivision, eligible retirement income received by a husband and a wife as joint tenants with right of survivorship or as tenants by the entirety shall be deemed to have been received one-half by each."

Approved July 1, 1997