SB 72 DE

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Became Law

In 2017, the federal Tax Cuts and Jobs Act (TCJA), Public Law No. 115-97, suspended many itemized deductions from individual federal taxes until January 1, 2026, including the itemized deduction for costs to maintain membership in a labor organization. Senate Bill No. 72 created a tax credit for resident individuals equal to the annual cost, not to exceed $500, to the individual to maintain membership in a labor organization. Senate Substitute No. 1 for Senate Bill No. 72 made the annual cost to a resident individual to maintain membership in a labor organization an itemized tax deduction, not to exceed $500. Senate Amendment No. 1 to SS 1 for SB 72 sunset this itemized deduction when the federal tax deduction for costs to maintain membership in a labor organization is restored. Like SS 1 for SB 72, Senate Substitute No. 2 for Senate Bill No. 72 creates an itemized tax deduction for the annual cost to a resident individual to maintain membership in a labor organization. SS 2 for SB 72 differs from SS 1 for SB 72 as follows: 1. It does not allow an individual to take this deduction if the individual has taken a deduction on their federal income tax return for any cost to maintain membership in a labor organization. 2. It clarifies that this exemption does not include payments that are not deductible under federal law for amounts paid to or through a labor organization for employee benefits, pension contributions, other compensation, or that were used in connection with lobbying or political expenditures, or settlement or investigatory costs or assessments of a government entity. 3. Does not define “labor organization”, because under § 1101 of Title 30, it has the same meaning as when used in federal law in reference to federal income taxes. If an individual deducts any cost to maintain membership in a labor organization from their federal income tax return, that deduction flows through to the state return. By limiting this deduction to individuals who have not taken a deduction on their federal income tax return for any cost to maintain membership in a labor organization, SS 2 for SB 72 does not need to sunset, because if federal law restores or creates a similar deduction in the future and an individual uses that deduction, the individual cannot claim the same deduction again on their state income tax return. This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

• Nicole Poore Democratic · primary
• Valerie Longhurst · primary
• Sherry Dorsey Walker · primary
• Brian Pettyjohn Republican · primary
• Kendra Johnson Democratic · primary
• Sean Matthews · primary
• Peter C. Schwartzkopf · primary
• S. Elizabeth Lockman Democratic · primary
• Spiros Mantzavinos Democratic · primary
• Marie Pinkney Democratic · primary
• David P. Sokola Democratic · primary
• Laura V. Sturgeon Democratic · primary
• Bryan Townsend Democratic · primary
• John "Jack" Walsh Democratic · primary
• Sean M. Lynn Democratic · primary
• Eric Morrison Democratic · primary
• Sarah McBride · primary

1. May 18, 2023 was introduced and adopted in lieu of SB 72 · upper
2. May 18, 2023 Passed By Senate. Votes: 17 YES 3 NO 1 ABSENT · upper
3. Jun 1, 2023 Assigned to Revenue & Finance Committee in House · lower
4. Jun 6, 2023 Reported Out of Committee (Revenue & Finance) in House with 1 Favorable, 6 On Its Merits · lower
5. Jun 7, 2023 Assigned to Appropriations Committee in House · lower
6. Jun 14, 2023 Reported Out of Committee (Appropriations) in House with 5 On Its Merits · lower
7. Jun 21, 2023 Passed By House. Votes: 26 YES 12 NO 1 NOT VOTING 2 ABSENT · lower
8. Aug 31, 2023 Signed by Governor · executive