Governor Meyer Signs House Bill 255
November 19, 2025/
Governor Matt Meyer has signed legislation, a bill the Delaware Senate has passed, that officials say would protect state revenues by “decoupling” Delaware’s tax code from two specific provisions of the federal Internal Revenue Code. House Bill 255 was introduced following the October meeting of the Delaware Economic and Financial Advisory Council (DEFAC), during which it was reported that Delaware could face a drop in revenue of more than $400 million over the next three years, after Congress passed HR1 earlier this year.
Additional Information from the Delaware Senate:
The “One Big Beautiful Bill Act” (OBBBA), which made significant changes to the federal tax code, allows large companies to fully write off the full cost of research, experimental activities, and certain property investments, rather than spreading those corporate tax benefits over multiple years. These changes, some of which are retroactive for businesses beginning in tax year 2022, would result in a loss of state revenues that were allocated on a bipartisan basis when the General Assembly approved Delaware’s operating budgets. Without passing HB 255, the state stood to see revenue drop by $222.8 million in fiscal year 2026, $107.4 million in fiscal year 2027, and $79.9 million in fiscal year 2028.